Dollar slides on Donald Trump concern, but stocks rise

Photo: Reuters

The U.S. dollar fell on Friday and was set to close its worst week in more than a year, with losses steepening after reports an investigation into possible collusion between Russia and Donald Trump‘s presidential campaign now include a person close to the President.

Stocks pared gains on Wall Street and Treasury yields hit session lows after the report from the Washington Post. Separately, the New York Times reported more details on Trump’s recent meeting with Russian diplomats in the Oval Office.

A senior White House adviser is a significant person of interest in the investigation of possible ties between Donald Trump’s presidential campaign and Russia, the Post reported citing people familiar with the matter.

It was the most eventful week of the year so far for financial markets, with many major equity markets scaling record highs and then plunging mid-week in one of the sharpest cross-asset routs in years.

Triggering the move was uproar over Trump’s firing of FBI director James Comey and allegations he pressed Comey to stop investigating his former national security chief’s alleged ties with Russia.

Stocks on Wall Street pared gains of as much as 1 per cent on the S&P 500. The Friday reports out of Washington came after European markets had closed.

“I’m sure some of (the move in markets) is related to that, and the fact that Trump is going to be out of the country and nobody’s quite sure what he’s going to do,” said Paul Nolte, portfolio manager at Kingsview Asset Management in Chicago, speaking of the latest headlines from Washington.

“We’ve got two days now to wring our hands about what might happen,” he said, adding that the stock market didn’t seem too concerned at this point.

The Dow Jones Industrial Average <.DJI> rose 141.82 points, or 0.69 per cent, to 20,804.84, the S&P 500 <.SPX> gained 16.01 points, or 0.68 per cent, to 2,381.73 and the Nasdaq Composite <.IXIC> added 28.57 points, or 0.47 per cent, to 6,083.70.

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