Dollar trades lower after Trump fired Comey; Draghi’s statement failed to impact euro

Dollar trades lower

The U.S. dollar plunged Wednesday’s close following the dismissal of FBI chief James Comey by U.S. President Donald Trump. This heightened concerns if the movement could hinder Trumps enactment of his pledged tax reform legislation.

The dollar edged lower by 0.1 percent against the yen at 113.90. Nevertheless, the currency was bolstered last Tuesday more than 114.32 yen. The U.S. dollar index, the greenback inched lower by 0.1 percent at 99.55.

The undertakings of Trump incited a political blaze and it ignited assumptions whether White House was extending its efforts to blunt the FBI probe. The market however is still non-bearish to the greenback especially against the Japanese currency. Investors are currently anticipating the progress in the United States to improve in the second half of 2017. Meanwhile the Federal Reserve is stabilizing its interest rate hike position.

BK Asset Management’s managing director Boris Schlossberg says that the perspective will rely on an even political atmosphere that will permit President Trump to eye on the awaited tax reform plan and domestic subjects.

In other places, North Korea is preparing for its sixth nuclear test and it revived concerns on the safe-haven status of the yen. It had dipped for eight straight sessions earlier as the risk appetite for currencies was heightened. This is after the presidential election in France edges off the euro.

In the meantime, the remarks of European Central Bank’s (ECB) president Mario Draghi last Tuesday unsuccessfully influenced the euro, which was lower at $1.0875. He added that the ECB proclaiming victory in its mission to strengthen euro zone inflation was too early.

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