The dollar fell against a basket of major currencies on Tuesday, after U.S. President Donald Trump’s eldest son released an email chain citing Russian support for his father before last year’s U.S. election.
Donald Trump Jr. was told a Russian prosecutor was offering his father’s presidential campaign incriminating information about Democratic rival Hillary Clinton as part of Russian government support, according to an email chain that he released on Tuesday.
“At the very least, these types of headlines play up concerns about dysfunction in Washington and the inability of this administration to pass any meaningful legislation, particularly related to fiscal stimulus,” said Omer Esiner, chief market analyst at Commonwealth FX in Washington.
The dollar index .DXY, which tracks the greenback against six major rivals, turned negative on the day to fall to a more than one-week low of 95.673. The index was down 0.31 percent.
“The Russian investigation has probably been the biggest mark against the Trump administration, and the more we get to know the more the markets gets concerned,” said Alfonso Esparza, senior currency analyst at OANDA in Toronto.
Investors are waiting for U.S. Federal Reserve Chair Janet Yellen’s semi-annual monetary policy testimony before Congress on Wednesday and U.S. consumer inflation data on Friday.
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