Political woes weigh on Greenback


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.



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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