The dollar index, which tracks the dollar against a basket of currencies, edged up to trade at 95.720 at 2:58 p.m. HK/SIN after initially falling on the news. Meanwhile, the dollar was softer against the yen after hitting a four-month high in the previous session, with the greenback last fetching 113.49 yen.
Pressure on the dollar also saw the euro/dollar hit its highest level since May 2016. The common currency traded at $1.1456 at 3:03 p.m. HK/SIN compared to a high of $1.1489 seen earlier in the session.
“Russia-gate makes for good headlines, but the market [is] focused on the immediate monetary policy tasks at hand. While Yellen will count, the real driver for near-term dollar sentiment will be this week’s U.S. CPI,” OANDA senior trader Stephen Innes told CNBC, adding that political tail risk remained concerning.
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