Dollar plunges on US political uncertainty

NEW YORK: The dollar fell and was poised for its worst week in more than a year, while world stock markets edged up yesterday amid some calm following declines earlier in the week spurred by uncertainty relating to Donald Trump’s US presidency.

On Wall Street, key stock indices climbed, led by energy shares.

The dollar slipped 0.7% yesterday and was down about 2% for the week, its worst week since April 2016. Besides worries surrounding Trump, the US currency has suffered from a resurgent euro, which has gained more than 2% this week.

It has been the most eventful week of the year so far for investors, with leading world equity markets scaling record highs and then plunging in one of the sharpest cross- asset routs in years. Triggering the move was uproar over Trump’s firing of Federal Bureau of Investigation director James Comey and allegations he pressed Comey to stop investigating his former national security chief and other officials’ alleged ties with Russia. Investors have been concerned the allegations could delay tax cuts and increased spending. – Reuters