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Dollar Losing Ground As Troubles Mount For Trump

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The dollar is losing ground against all of its major rivals Wednesday afternoon. The currency is weakening due to the political turmoil of the Trump administration in recent days. The most recent crisis stems from reports that President Trump meddled with the Federal Bureau of Investigation's probe into his former National Security Advisor Michael Flynn.

Trump reportedly asked the former FBI director James Comey to end the federal investigation pertaining to his former national security adviser, Michael Flynn, in an Oval Office meeting in February, accordion to The New York Times.

U.S. Rep. Jason Chaffetz, Chairman of the House Oversight and Government Reform Committee, responded to the news by demanding the FBI to turn over "all memoranda, notes, summaries and recordings" of discussions between Trump and Comey.

The news came on the heels of an earlier report that the U.S. President shared terrorism intelligence with Russian officials, an action he has since defended.

The latest developments have intensified concerns over Trump's ability to make progress on issues such as tax reform and deregulation.

The dollar has dropped to a 6-month low of $1.1150 against the Euro this afternoon, from an early high of $1.1081.

Eurozone inflation accelerated as estimated in April, final data from Eurostat showed Wednesday. Headline inflation climbed to 1.9 percent from 1.5 percent in March. Inflation has returned to the European Central Bank's target of 'below, but close to 2 percent.'

Eurozone construction output declined in March after rebounding in the previous month, data published by Eurostat showed Wednesday. Construction output dropped 1.1 percent in March from February, when it grew 5.5 percent.

The buck fell to a low of $1.2990 against the pound sterling Wednesday, but has since rebounded to around $1.2960.

The UK unemployment rate declined in the first quarter despite a slowdown in economic growth, while earnings growth remained weak amid rising inflation.

The ILO jobless rate eased to 4.6 percent in the three months to March, the lowest since 1975, data from the Office for National Statistics showed Wednesday.

The rate dropped from 5.1 percent in the previous year and 4.7 percent in the three months to February.

The number of unemployed decreased by 53,000 from the previous quarter to 1.54 million in the three months to March.

British household finances are experiencing the most severe strain since the middle of 2014, amid subdued pay growth and as living costs rose at the fastest pace in nearly three years, survey data from IHS Markit and Ipsos Mori showed Wednesday.

The IHS Markit Household Finance Index climbed to 42.4 from 42.5 in April. The latest reading was well below the post-crisis peak of 46.2 seen in January 2015.

The greenback has tumbled to over a 2-week low of Y110.990 against the Japanese Yen this afternoon, from around Y112.725 this morning.

Core machine orders in Japan climbed a seasonally adjusted 1.4 percent on month in March, the Cabinet Office said on Wednesday, coming in at 862.3 billion yen. That missed expectations for an increase of 2.5 percent following the 1.5 percent gain in February.

Japan's industrial production declined less than initially estimated in March, latest figures from the Ministry of Economy, Trade and Industry showed Wednesday. Industrial production fell 1.9 percent month-over-month in March instead of a 2.1 percent decrease reported earlier. In February, production had risen 3.2 percent.

by RTT Staff Writer

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