Dollar Weakens Some After FBI Director Comey Fired

By Barbara Kollmeyer Markets MarketWatch Pulse

The U.S. dollar traded weaker against some rivals on Wednesday, which some analysts attributed in part to the abrupt dismissal of Federal Bureau of Investigation Director James Comey. The ICE Dollar Index traded at 99.44, bouncing off a low of 99.38 seen earlier on Wednesday. That compared to a level of 99.39 in late New York trading Tuesday. The dollar recovered some ground against the Japanese yen after dropping to �113.63 earlier on Wednesday. The pair last traded at �113.96, compared to �113.87 in New York late Tuesday. The bulk of the dollar's weakness was concentrated in the British pound and euro crosses. The pound rose to $1.2977 from $1.2935 late Tuesday, while the euro rose to $1.0889 from $1.0872. Analysts at Sucden Financial noted the dollar fell Tuesday on after the UK ambassador to North Korea said there could be another nuclear test. U.S. politics also cast a shadow, they said. "President Trump's decision to fire FBI Director Comey also had some negative impact on the dollar, especially with concerns that it would undermine progress in securing congressional support for tax reform," said the analysts, in a note to clients. U.S. President Donald Trump fired Comey on Tuesday over the FBI director handling of the probe into Hillary Clinton's emails.

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