FOREX-Dollar dented by Trump impeachment talk, weak data

Published 24/09/2019, 20:46
© Reuters.  FOREX-Dollar dented by Trump impeachment talk, weak data

* Trump impeachment talk surges

* U.S. consumer confidence plunges in September

* German business morale rose in September

* Pound firms after UK court rules parliament suspension

illegal

(Recasts with afternoon trading, adds comments)

By Saqib Iqbal Ahmed

NEW YORK, Sept 24 (Reuters) - The dollar fell across the

board on Tuesday as a growing number of Democratic lawmakers

called for an impeachment inquiry against President Donald

Trump, even as weak consumer confidence data added to worries

over the prolonged China-U.S. trade war.

Trump confirmed on Tuesday he had withheld nearly $400

million in U.S. aid to Ukraine but denied he did so as leverage

to get its president to initiate an investigation that would

damage Democratic rival Joe Biden. In Washington, House of Representatives Speaker Nancy Pelosi

was meeting with fellow Democratic lawmakers to consider

impeachment of the Republican president, who has withstood

repeated scandals since taking office in 2017. Pelosi is

scheduled to make a public statement at 5 p.m. (2100 GMT).

Pelosi will announce that the House is launching a formal

inquiry into Trump's impeachment, the Washington Post reported.

"The dollar is coming under a lot of pressure because it

looks like political risk is really starting to seep back into

the market," said Boris Schlossberg, managing director of FX

strategy with BK Asset Management in New York.

The dollar index, which measures the U.S. currency against

six major currencies, was down 0.28%.

"The actual act of impeachment, the proceedings, the

potential evidence that could come out here, all of that is

massively risk-sensitive," said Schlossberg.

Investors were taking refuge in the safe-haven Japanese yen

and the Swiss franc as they awaited more clarity, he said.

The dollar was 0.48% lower against the Yen. The greenback

fell 0.45% against the Swiss currency.

The dollar had started the U.S. session weak with the euro

finding support from data that showed German business morale

rose in September for the first time in six months.

The greenback took another hit after data showed U.S.

consumer confidence fell in September, raising worries about the

strength of the U.S. economy.

Consumer confidence fell by the most in nine months, more

than expected, as Americans' economic outlooks darkened in the

face of the U.S.-China trade war, according to a private-sector

report released on Tuesday. Sterling gained after the UK Supreme Court ruled that Prime

Minister Boris Johnson's decision to suspend parliament for five

weeks was unlawful, which was seen as making it less likely that

Britain would leave the European Union without a transition

agreement.

Investors, however, saw no signs of a sustainable rebound in

UK assets and said the recent events further deepened the

uncertainty now attached to the British currency.

The pound was up 0.53% against the dollar.

Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh

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