The euro rose to a six-month high against the dollar on Tuesday
The dollar slumped against a basket of major currencies on Tuesday, after reports surfaced that President Donald Trump shared sensitive information with Russia at a meeting last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.71% to 98.11 by 13:14 EDT.
President Trump took to twitter on Tuesday to defend his decision to share sensitive information with Russia, insisting that he had “the absolute right” to share “facts” about terrorism with Russia.
This latest U.S. political saga, came a week after President Trump abruptly fired FBI chief James Comey, and added to concerns that ongoing political turmoil in Washington could prove a distraction to the Trump administration and delay its plans to move forward with its economic agenda, which includes tax reform and deregulation.
Elsewhere, a mixed bout of economic data weighed on the greenback, after US housing data fell short of expectations while industrial production expanded at the fastest pace in more than three years.
The Federal Reserve said Tuesday that U.S. industrial production at factories, mines and utilities rose 1% in April from March, well above expectations for 0.4% increase.
In a separate report on Tuesday, the Commerce Department said housing starts dropped 2.6% to a seasonally adjusted annual rate of 1.17 million units, the lowest level in five months, and below expectations for a 3.7% rise.
Elsewhere, the EUR/USD leaped to six-month high of $1.1078, up 0.94%, while EUR/GBPgained 0.80% to 0.8576.
GBP/USD rose 0.17% to $1.2917, after UK inflation rose to highest level in more than three years.
USD/JPY traded at 113.22, down 0.48%, while USD/CAD fell by 0.33% to $1.3589.