The US dollar rose slightly on Friday but was on track for a weekly decline after US President Donald Trump's interim pick for a Federal Reserve Board member sparked expectations of a dovish successor to Jerome Powell when his term ends.

The yen slipped slightly against the dollar, which dropped 0.31% to 147.560 yen. The dollar rose 0.25% against the euro to $1.163775 and climbed 0.29% against the Swiss franc to 0.80840 francs.

Amid concerns over slowing US economic growth, especially in the labor marketfueling hopes for Fed rate cutsthe dollar has declined 0.6% so far this week against a basket of major currencies. On Friday, the US Dollar Index edged up 0.1% to 98.15.

Markets focused on Trumps nomination of Council of Economic Advisers Chair Stephen Miran to fill a recent vacancy on the Federal Reserve Board as the White House continues its search for a permanent replacement. Miran will take over from Governor Adriana Kugler, who unexpectedly resigned last week.

Michael Brown, chief research strategist at Pepperstone, commented, In many ways, this confirms what we already suspected: we're looking at a Federal Reserve more politically influenced and less independent. He added that this reinforces his long-term bearish outlook on the dollar, though he noted Miran has relatively low market credibility.

Brown added, We all expect that at the September FOMC meetingand any future meetings Miran attendshe will be highly dovish, advocating significant rate cuts, essentially following the president's directive.

While investors remain concerned about the Feds independence and credibility following Trumps repeated criticism of Powell for not cutting rates, some analysts believe Mirans appointment is unlikely to have a major impact.

Reeza Rashid, global markets strategist at JPMorgan Asset Management in Singapore, said, We still believe the central banks independence will largely remain intact, forecasting that the Fed would stay focused on incoming data and the overall health of the US economy.

Trump has fiercely criticized Powell, and expectations of a dovish successor have weighed on the dollar this weekeven though Trump has recently pulled back from threats to fire Powell before his term ends on May 15.

Bloomberg reported on Thursday that Fed Governor Christopher Wallerwho voted in favor of a rate cut at the last meetingis emerging as one of the top contenders to replace Powell.

Investors now shift their attention to next weeks US consumer price inflation data, with Reuters survey respondents expecting core inflation to rise 0.3% month-over-month in July. These figures will offer clues on whether tariff-induced inflation pressures are emerging and help shape the Feds policy path.

Atlanta Fed President Raphael Bostic said Thursday that although labor market risks are rising, its still too early to commit to a rate cut, pointing out that more data will be available before the next policy meeting on September 1617.

Traders are pricing in a 93% probability of a rate cut in September, with at least two cuts expected before year-end.

The dollar has broadly weakened this year, falling 9.5% against a basket of major currencies as investors seek alternatives amid concerns over Trumps volatile trade policies. Analysts expect continued pressure on the dollar but dont foresee a sharp collapse.

Rashid added, We expect a scenario of bending, but not breaking, for the dollar.

As for the British pound, it touched a new two-week high at $1.34515, maintaining strong gains from Thursday after the Bank of England cut interest rates. However, the 54 vote revealed weak consensus on the easing path.

Goldman Sachs analysts said the split vote suggests one of the most hawkish 25-basis-point cuts that could reasonably be expected. The pound appears headed for its best weekly performance since late June.