US dollar remains under pressure on Trump-Russia worries

US dollar remains under pressure on Trump-Russia worries

The U.S. dollar fell for a fourth straight session against a basket of major currencies on Tuesday amid worries after Trump’s disclosure of information with Russia.

The dollar index, which tracks the greenback’s movements versus a basket of major currencies, traded lower at 98.20, near the weakest levels since Donald Trump was elected.

The green currency dipped to a low of 98.11 after a report showing U.S. housing starts and building permits missed analysts’ forecasts in April.

Trump has faced criticism after he shared information with Russian officials, which came directly after his firing to FBI Director James Comey, who was investigating the president's ties to Russia.

Now, there are political concerns that Trump may not continue his first term of Presidency, or may not be able to adopt his spending and tax cuts plans that would bolster the economy.  

Dull economic data released at the end of last week and at the beginning of this week added to expectations the Fed may not raise interest rates in June.

Chances of seeing a rate hike next month retreated to 73 percent this week from a more than 80-percent chance last week, according to CME's FedWatch tool.

The dollar has been under pressure since hitting a 14-year high of 103.80 early June after the inauguration of President Trump.

The EURUSD resumed its advance to 1.1070 after setting a high of 1.1087, following data showing the euro area economy grew 0.5 percent in the first quarter, moving in line with expectations.

Against the Japanese yen, the dollar tumbled to 113.51, while traded near the session’s open at 1.2894 versus the British pound.

Ahmed Mamdouh

Ahmed Mamdouh, Co-Founder and Head of English Fundamental Analysis at FXComment.com, with 7 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.

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