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By Bloomberg

The dollar weakened, extending its worst week in a month, as Treasuries and German bonds rose. U.S. equity-index futures declined while Chinese shares climbed to a seven-year high.

The dollar slipped 0.2 percent to $1.0787 per euro at 8:56 a.m. in London, leaving it 1.8 percent lower for the week. The yield on 10-year Treasuries fell three basis points to 1.86 percent and the rate on bunds touched a record low. Standard & Poor’s 500 Index futures lost 0.2 percent and the Stoxx Europe 600 Index was little changed. The Shanghai Composite Index jumped 2.2 percent. Oil in New York fell 0.7 percent to $56.35 a barrel.

The U.S. reports consumer prices Friday, after a run of lackluster economic data weakened the dollar. China shares are rallying on bets policy makers will do more to bolster growth in the world’s second-biggest economy. Oil pared gains after rallying more than 8 percent this week on speculation American production is starting to ease.

“U.S. data is coming in a little bit below expectations, so the general sense of data disappointment is still very much there,” weighing on the dollar, said Kymberly Martin, a markets strategist in Wellington at Bank of New Zealand Ltd.

The Bloomberg Dollar Spot Index, a gauge of the currency against 10 major counterparts, was little changed amid a weekly retreat of 1.5 percent, the most since the five days to March 20.

Investors are poring over U.S. economic reports as they try to determine the Federal Reserve’s likely path on interest rates. Officials from the U.S. central bank continued to provide conflicting signals Thursday, spurring fluctuations in Treasuries.

Fed Vice Chairman Stanley Fischer sent Treasuries tumbling last session after reminding investors that the central bank wants to boost key borrowing costs. Fed Bank of Atlanta President Dennis Lockhart then halted the selloff, saying he wanted to see both falling unemployment and quickening inflation prior to the first rate increase.

Data released Thursday indicated the economy may be losing momentum, with U.S. housing starts rising less than estimated in March, while jobless claims unexpectedly increased last week.