By Ira Iosebashvili
The dollar drifted lower Thursday as political turbulence in the U.S. pushed investors to take profits on recent gains in the currency.
The ICE Dollar Index, which gauges the U.S. currency against a basket of six others, was recently down 0.7% at 100.49 after advancing more than 1% from its lows of the month.
Some investors have been discomfited by the new administration's focus on controversial topics such as immigration and a lack of news on how the White House plans to push through promises of tax cuts and fiscal spending President Donald Trump made during his campaign.
"With little in the way of details on the administration's plans to grow the economy through increased fiscal support has forced investors to simply hope and speculateand has limited the dollar's ability to move sustainably higher," analysts at Commonwealth Foreign Exchange said in a note to clients.
Stiff opposition to some of Mr. Trump's cabinet picks and the resignation of his national security adviser earlier this week have added to the feeling of political uncertainty, investors said.
The dollar was down 0.8% against the yen to Yen113.24. It lost 0.9% against the Swiss franc to 99.70. Both currencies tend to attract buying during times of political or economic uncertainty.
Gold, another popular safe haven, gained 0.7% to $1,241.60 a troy ounce.
A series of strong U.S. economic data releases and a hawkish tone from Federal Reserve Chairwoman Janet Yellen in congressional testimony earlier this week are likely to keep the dollar from sliding too far, Commonwealth said.
The euro was up 0.7% at $1.0676. The dollar gained 0.5% against the Mexican peso, to 20.38.
Write to Ira Iosebashvili at email@example.com
(END) Dow Jones Newswires
February 16, 2017 17:34 ET (22:34 GMT)
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