* Dollar recovers after Tuesday's drop on impeachment
inquiry
* Pound falls on lingering political risks
(Recasts with afternoon trading)
By Saqib Iqbal Ahmed
NEW YORK, Sept 25 (Reuters) - The dollar rose across the
board on Wednesday, rebounding from the previous day's slide as
investors nervous about an impeachment inquiry against U.S.
President Donald Trump sought a safe haven, and as sterling fell
1% on nagging uncertainty about Brexit and an election.
Trump pressed Ukraine's president to investigate his leading
Democratic rival, former Vice President Joe Biden, in
coordination with the U.S. attorney general and Trump's personal
lawyer, according to a summary of a telephone call released by
the administration. A day earlier, House of Representatives Speaker Nancy Pelosi
said the Democratic-led chamber was launching an official
impeachment inquiry, setting up a political showdown as Trump
campaigns for re-election in 2020.
Increased political risk have boosted the dollar's appeal
for investors seeking safety and stability, analysts said.
"There are political battles brewing on both sides of the
Atlantic," said Juan Perez, senior currency trader at Tempus Inc
in Washington.
"I think that overall the dollar's safe haven status is
understood," he said.
The greenback is viewed as safe-haven due to its standing as
the world's reserve currency.
The dollar index .DXY , which measures the greenback
against six major currencies, was up 0.7%, on pace for its
biggest daily rise in nearly three months. On Tuesday, the index
slipped 0.3% to finish the session at 98.337.
Part of the strength of the dollar's move on Wednesday was
an unwinding of the knee-jerk investor reaction to the
impeachment inquiry news that sparked the previous day's slide,
analysts said.
The immediate reaction to sell the dollar was questionable,
Adam Cole, a currency analyst at RBC Capital Markets, said.
"For a couple of reasons it's not a sell risk or sell dollar
story," he said, saying there was still a small chance that
Trump would be impeached.
The British pound dropped more than 1% versus the dollar,
ceding gains made the previous day after the Supreme Court's
ruling against Prime Minister Boris Johnson, as investors priced
in many more months of Brexit and general election risk.
Meanwhile the euro EUR= , which has been dogged by worries
about the dismal state of the euro zone economy, shed 0.68% on
Wednesday.
Euro vs U.S. dollar https://tmsnrt.rs/2mAPAvJ
Graphic: World FX rates in 2019: http://tmsnrt.rs/2egbfVh
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(Editing by Marguerita Choy and David Gregorio)