Published: Sun, May 28, 2017
Money | By Armando Alvarado

USA dollar fall on rising concerns over Trump

USA dollar fall on rising concerns over Trump

Swiss Franc inclined by 0.3 percent against dollar closing at 0.9828 franc-dollar and gold increased by 0.6 percent closing at $1,243.4 per ounce.

In the meantime, the current bout of risk aversion has brought safe havens back in favour with traders. It reached session high at 1.2989 and dropped to session low at 1.2931 levels.

The dollar was under pressure in Asia Thursday on fears that US President Donald Trump's mounting political woes will stall his economic growth plans and a June rate hike.

OIL: Benchmark U.S. crude rose 13 cents to $48.79 per barrel in electronic trading on the New York Mercantile Exchange while Brent crude, used to price worldwide oils, was up 24 cents to $51.89 per barrel in London.

Yen's dominant market performance has been pushing Asian stocks to the brink, Hong Kong's Hang Seng Index suffered a loss of about 0.19%, while the mainland stock, Shanghai Composite loses 0.26% at 3104.74 at 8.22 points; on the other hand, the Shenzhen Composite was surprisingly up by 0.13% at 1867.68 or 2.42 points.

A small but growing number of Trump's fellow Republicans called on Wednesday for an independent probe of possible collusion between his 2016 campaign and Russian Federation, and one even mentioned impeachment. The S&P 500 financial sector .SPSY tumbled more than 3 percent, led by losses in Bank of America BAC.N and JPMorgan JPM.N .

By 0740 GMT, the dollar index was virtually unchanged at 97.616, having fallen as low as 97.333 on Wednesday, its lowest since November 9.

Brent oil futures dipped back to $52.05 a barrel after hitting a two-week high overnight on the back of an ongoing effort by OPEC to cut production.

United States crude was effectively flat at US$49.04 a barrel. Gasoline and distillate stocks also dropped.

US Senate intelligence panel requests Trump campaign documents
However, there may be a contempt of Congress action should Flynn continue to refuse to share the documents that were subpoenaed. Brennan did not cite the names of the Trump aides that USA intelligence agencies had eyed for their Russian Federation contacts.

The dollar's index against a basket of six major currencies .DXY =USD dropped to 98.063, essentially giving up all of the gains it made after Trump's election victory in November. Against the yen USDJPY, -0.18%, the dollar fell to ¥113.58, from ¥113.79 on Monday.

USD/JPY is supported around 110.57 levels and now trading at 110.94 levels.

In April, the yen had firmed to the low 108 yen-range against the dollar, but temporarily softened on speculation that the U.S. Federal Reserve would raise interest rates, expanding the Japan-U.S. rate differential. News emerged on Tuesday that Trump had asked his now-dismissed FBI chief James Comey to end the agency's investigation into ties between former White House national security adviser Michael Flynn and Russian Federation.

A mini-recovery in Asia as Japan posted its best economic performance in a year ran out of steam in Europe, and it was limping sideways at $1.1136 per euro and buying 110.97 Japanese yen by the time US traders got to their desks.

In Europe, Germany's DAX was down 0.3 percent at 12,768 while the CAC 40 in France fell 0.4 percent to 5,387.

USA stocks and the dollar sold off and bond prices rallied as investors fled risky assets amid uncertainty about Trump's ability to deliver on his policy agenda, such as tax and regulatory changes.

The S&P 500 was on track for its worst day since September.

Benchmark 10-year notes gained a full point in price to yield 2.22 percent, the lowest level since April 21, and down from 2.33 percent late on Tuesday.

The euro broke above $1.11 to an extent not seen since November, while the yen is also increasing pressure on the USA unit.

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