Dollar hit as Donald Trump set to be investigated

Denise Jackson

The US dollar saw some uncertainty in the foreign exchange markets on Wednesday after the House of Representatives announced that it would be beginning an impeachment process against President Donald Trump.

The speaker of the House of Representatives, Nancy Pelosi, said that she would be looking into a variety of accusations.

This came after claims that President Trump is alleged to have looked for assistance from foreign countries to damage the reputation of a candidate running against him in next year’s presidential election.

He allegedly asked the President of Ukraine in Eastern Europe to investigate Joe Biden – and held back hundreds of millions of dollars’ worth of US foreign aid until he did so.

According to Pelosi, Trump may have caused a national security threat.

If the impeachment goes ahead, it will need to pass through the House of Representatives – which is currently controlled by the Democratic Party – Trump’s opponents.

However, President Trump cannot be convicted or removed from office unless the Senate votes to convict him – and that house is controlled by his own party, the Republicans.

Trump appeared to respond to the volatility by going on the defensive on a number of fronts.

He told the United Nations General Assembly in New York that the ongoing trade talks between his country and China would need to ensure they did not result in a “bad deal”.

The dollar also had to contend with a number of issues relating to data releases.

Consumer confidence figures showed that the US public are less confident in stores than they have been for many months.

It recorded the lowest point in three-quarters of a year in September, much lower than predicted.

The multifaceted uncertainty caused the dollar to see some changes.

Safe haven currencies were the main victors, with the yen surging ahead in its pair against the US dollar and reaching 107.09.

The Swiss franc saw its best performance for around three weeks, reaching 0.9845 at one stage over the course of Tuesday.

Perhaps the only main victor over the course of the day was the British pound.

Sterling was buoyed by the news that Prime Minister Boris Johnson’s decision to suspend proceedings in the country’s parliament a few weeks ago was declared unlawful by the country’s highest court.

MPs are now expected to start work again today (Wednesday).

It remains unclear whether or not opposition parties intend to combine forces to attempt to throw out Mr Johnson or call for a general election.

In its pair against the US dollar, the pound was selling for $1.2492.

This keeps it in the same region of the two-month high it hit in recent days.

The single European currency was still suffering from data releases earlier in the week which appeared to suggest that the Eurozone’s economy was suffering profoundly.

It was slightly higher than its low point of $1.0966 reached on Monday, but not by much.

It was recorded at $1.1017 in its pair with the US dollar.

The Chinese yuan saw little change in offshore trading and was selling for 7.1051 per dollar at one stage.

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Denise Jackson
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