The U.S. dollar traded slightly up last Monday as investors are currently evaluating the effects of the new session of political uproars in the United States along with the European currency which is rising again.
President Donald Trump left behind all the political uncertainties in Washington as he is now on his first foreign trip to the Middle East. This made investors fear that he might fail to enact his pledged fiscal stimulus and tax reform, as it was considered a hindrance. The concerns also threaten to outweigh the dollar sentiment made by prospects for an interest rate hike in the U.S. this June.
Turmoil’s regarding the dismissal of FBI chief James Comey by Trump also pressured the U.S. currency. Comey was overseeing a probe into a likely link between Russia and the president’s election campaigning team. According to the Washington Post last Friday, an official from the White House is said to have a significant interest in the investigation.
The news dragged the Treasury yields down and weakened the appeal of the dollar. However it marginally rebounded on Monday’s session. The 10-year benchmark of U.S. Treasury yields rose by 2.253 percent.
The euro fell more than 0.2 percent to dollar at $1.1189, following the currency hitting its six-month high of $1.1212 last Friday. Meanwhile versus the yen, the euro was higher by 0.2 percent to 124.87. The index that measures the value of the greenback relative to the value of its opposing currencies, the dollar index was stable at 0.2 percent from U.S. levels to 97.292 last Friday.