Dollar Falls Amid U.S. Political Worries

Dollar Falls Amid U.S. Political Worries

The U.S. dollar drifted lower against its most major opponents in the European session on Wednesday, as a guilty plea from Trump's former personal lawyer, Michael Cohen, and the conviction of the president's former campaign chairman Paul Manafort triggered uncertainty over his leadership.

Cohen pleaded guilty to campaign finance violations and other charges, and Paul Manafort, Trump's former campaign chairman, was found guilty on five counts of tax fraud, renewing political worries.

Investors awaited the release of minutes from the Federal Reserve's August meeting today and the annual economic symposium at Jackson Hole, Wyoming, on Friday for rate hike clues.

Data from the National Association of Realtors showed that U.S. existing home sales unexpectedly decreased in the month of July.

NAR said existing home sales dropped by 0.7 percent to an annual rate of 5.34 million in July after falling by 0.6 percent to a rate of 5.38 million in June.

The currency traded mixed against its major counterparts in the Asian session. While it held steady against the franc and the euro, it dropped against the pound. Against the yen, it rose.

The greenback slipped to a 2-week low of 1.2927 against the pound and a 2-1/2-month low of 0.9808 against the franc, from its early highs of 1.2868 and 0.9854, respectively. The greenback is likely to challenge support around 1.32 against the pound and 0.97 against the franc.

The greenback reversed from an early high of 1.1554 against the euro, dropping to near a 2-week low of 1.1620. If the greenback falls further, it may find support around the 1.18 level.

The greenback fell to near a 2-week low of 1.3007 against the loonie and held steady thereafter. The greenback is poised to challenge support around the 1.29 level.

The greenback dropped back to 0.6713 against the kiwi, on track to pierce near a 2-week low of 0.6720 seen at 6:45 pm ET. On the downside, 0.69 is likely seen as the next support level for the greenback.

Data from Statistics New Zealand showed that retail sales in New Zealand gained a seasonally adjusted 1.1 percent on quarter in the second quarter of 2018.

That beat forecasts for an increase of 0.3 percent, which would have been unchanged from the three months prior following an upward revision from 0.1 percent.

The greenback retreated to 0.7366 against the aussie, from a high of 0.7334 hit at 4:00 am ET. Next key support for the greenback is seen around the 0.75 level.

On the flip side, the greenback held steady against the yen, after having advanced to 110.50, from a low of 110.03 seen at 8:15 pm ET. The pair finished yesterday's deals at 110.29.

Data from the Ministry of Economy, Trade and Industry showed that Japan's all industry activity decreased in June, in line with expectations.

The all industry activity index dropped 0.8 percent month-over-month in June, reversing a 0.1 percent increase in May.

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