The dollar edged lower early Friday as worries over mounting U.S. government debt continued to weigh after the House passed Trump's tax and spending bill Thursday.

The bill aims to make the tax cuts introduced by Trump permanent but the financing for this is shaky and it can be assumed that the budget deficit will continue to swell, Commerzbank currency analyst Antje Praefcke said in a note.

"I am curious to see when the market will realize that this is the next major structural burden on the dollar," she said.