Dollar Slips on Political Uncertainty
The dollar slipped to its lowest level in seven months Tuesday amid political uncertainty in the U.S. and weak economic data.
The ICE Dollar Index, which gauges the U.S. currency against a basket of 6 others, was recently down 0.7% at 98.22, its lowest level since early November.
Investors worry that a string of controversies may make it more difficult for U.S. President Donald Trump to push through pledged tax cuts and infrastructure spending.
Fueling their concerns were reports late Monday that Mr. Trump divulged sensitive intelligence information to Russian officials, potentially compromising a U.S. ally. Last week, Mr. Trump fired Federal Bureau of Investigation Director James Comey, another controversial move.
Hopes for stimulus have steadily eroded over 2017, as a series of crises erodes the administration's ability to focus on passing fiscal legislation, said Omer Esiner, chief market analyst at Commonwealth Foreign Exchange.
Weaker-than-expected housing data also weighed on the U.S. currency. U.S. new-home construction in April declined modestly for the third time in four months, the Commerce Department said Tuesday.
The euro was up 0.9% to $1.1068. The dollar was down 0.6% to Yen113.08.
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(END) Dow Jones Newswires
May 16, 2017 12:05 ET (16:05 GMT)