Meanwhile, more political headlines out of the U.S. overnight put pressure on the dollar. Special Counsel Robert Mueller was looking into transactions involving President Donald Trump and people linked to him, Bloomberg reported.
The dollar index stood at 94.281 at 8:02 a.m. HK/SIN compared to a high of 95.167 seen earlier in the overnight session. The greenback also softened against Japan’s currency to fetch 111.85 yen compared to levels around the 112 handle seen earlier this week.
The dollar had taken a tumble on Tuesday on headlines related to stalled health care reforms in the U.S.
“This revelation is huge as just last week, President Trump said that expanding the investigation beyond Russia would be out of bounds. So with Mueller broadening the inquisition into Trump’s business dealings, U.S. political risk could move to whole new levels as this foxtrot plays out,” OANDA senior trader Stephen Innes said in a note.