US dollar gains

The dollar gained on Friday after US President Donald Trump praised economic adviser Kevin Hassett at ​a White House event and said he may want to keep him in his current role, prompting speculation he is less likely ‌to be named as chair of the Federal Reserve.

“I see Kevin’s in the audience, and I just want to thank you. You were fantastic on television today. I actually want to keep you where you are, if you want to know the truth,” Trump said.

“We have seen some US dollar buying on this headline, as it underscores that the Fed decision is mostly about political credibility,” Adam Button, chief currency analyst at investingLive, said in a note.

“Of the candidates, Hassett is ‌seen as the least independent, which in turn is the most-dovish due to Trump’s longstanding desire to cut rates,” ​Button said.

Trump is expected to name his candidate to succeed Jerome Powell in the coming weeks, with Powell’s term due to end in May. The leading four candidates for the role are Hassett, Fed Governor Christopher Waller, former Fed Governor Kevin Warsh and BlackRock’s chief bond investment manager Rick Rieder.

Betting site Polymarket ‍shows that Warsh is now a favorite to get the role.

The dollar index , which measures the greenback against a basket of currencies including the yen and the euro, rose 0.06 percent to 99.41, with the euro down 0.1 percent at $1.1594. The index reached a six-week high of 99.49 on Thursday.

The US currency has been boosted this week by data showing an ⁠improving US labor market, which has pushed back expectations of further Federal Reserve rate cuts until June.

Fed Vice Chair for Supervision Michelle Bowman said on ‍Friday a fragile job market that could weaken quickly means the US central bank should stand ready to cut interest rates again if needed.

Data on Friday showed that US ‌factory production unexpectedly ‌increased in December amid a surge in primary metals output that offset a decline at motor vehicle assembly plants, but activity contracted in the fourth quarter against the backdrop of challenges from import tariffs.