US Dollar takes a major hit on Comey allegations

The greenback fell against other major currencies in the aftermath of allegations that Trump in February asked James Comey to end the FBI’s investigation into former national security adviser Michael Flynn.

The stunning reports — denied by the White House — deepened the political turmoil engulfing Trump’s White House and intensified concerns among investors about the president’s ability to push through his big economic plans.

“The inflammable allegations have spooked both currency and equity markets,” said Stephen Innes, a senior trader at online broker Oanda. “Foreign exchange dealers are in flat out sell the dollar mode.”

The U.S. currency dropped as much as 0.7% against the Japanese yen in morning trading in Asia on Wednesday. It also slipped as much as 0.3% against the euro.

Stock markets were also suffering, with most major indexes around Asia in negative territory. U.S. stock futures were down about 0.6%.

The dollar’s decline followed an ugly trading session in the U.S. on Tuesday. The dollar index, which measures the greenback against a basket of rival currencies, dropped to territory unseen since just after Trump’s election in early November.





This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes