Dollar Losses Build As Trump Crisis Stokes Fears For Agenda

The dollar sank Wednesday with a fresh crisis in the White House fuelling concerns that Donald Trump’s economy-boosting agenda could be run off-track.

The administration was once again rocked by allegations over its links to Russia after it emerged the tycoon had divulged classified information to the nation’s foreign minister.

That was followed late Tuesday by claims by recently fired FBI boss James Comey that Trump pressed him to drop a probe into ex-national security advisor Michael Flynn over his links to Moscow.

“There has been a lot of focus on the US president who admitted that he did share information with Russia,” said Greg McKenna, chief market strategist at AxiTrader.

“But what’s potentially important for markets in the weeks and months ahead is that the president’s apparent missteps may galvanise his opponents, which could make it harder to implement his economic agenda.”

– Key figures around 0820 GMT –
Tokyo – Nikkei 225: DOWN 0.5 percent at 19,814.88 (close)

Hong Kong – Hang Seng: DOWN 0.2 percent at 25,293.63 (close)

Shanghai – Composite: DOWN 0.3 percent at 3,104.44 (close)

London – FTSE 100: DOWN 0.3 percent at 7,496.66

Euro/dollar: UP at $1.1118 from $1.1084 at 2100 GMT

Dollar/yen: DOWN at 112.35 yen from 113.07 yen

Pound/dollar: UP at $1.2926 from $1.2918

Oil – West Texas Intermediate: DOWN 37 cents at $48.29 per barrel

Oil – Brent North Sea: DOWN 30 cents at $51.35 per barrel

New York – Dow: DOWN less than 0.1 percent at 20,979.75 (close)