US stocks did not react to the testimony, which also expressed the fired FBI chief’s profound discomfort with Mr Trump’s behaviour.
However, US markets were unfazed by the letter, which Stephen Innes, senior trader at OANDA, said “offered no smoking gun or impeachment-worthy bombshells and only repeated what the market had already known”.
In Asian trade, Tokyo ended the morning 0.1 per cent higher with dealers brushing off news that the Japanese economy grew at a slower rate than first thought in January-March.
But Hong Kong lost 0.1 per cent and Sydney gave up 0.2 per cent while Seoul was off 0.4 per cent. Shanghai eased 0.1 per cent ahead of the release of Chinese trade data later in the day. Singapore and Wellington also dipped.
In Britain Prime, Minister Theresa May’s Conservatives are expected to win the national vote, but their once commanding lead in opinion polls has been slashed since she called it, leading to fears of political uncertainty ahead of key Brexit talks.
However, the pound remains buoyant on expectations of a Conservative win, with analysts predicting it could jump to US$1.32 if Mrs May wins a comfortable majority. It is currently at US$1.2961.
The euro was struggling on speculation the European Central Bank would lower its eurozone inflation forecasts through to 2019, leading to worries it would stick to its loose monetary policy.
The single currency had been rallying on hopes the lender, which holds a meeting Thursday, would begin to tighten monetary policy as the bloc’s economy picks up.
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