US dollar dropped against a host of global currencies in Asia trading on Friday 

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The US dollar dropped suddenly against a host of global currencies in Asia trading on Friday after reports that US President Donald Trump’s campaign team was last month served with a subpoena requesting documents related to Russia.

The Wall Street Journal, quoting an unnamed source, reported that the subpoena requested documents and emails from campaign officials and marked Robert Mueller’s first official order for information from the campaign. Mr Mueller is the special counsel leading the investigation into Russian interference in the election.

The 0.4 per cent fall on Friday morning for the dollar index – which measures the greenback against a basket of peers – appeared to be pegged to the report’s release, Westpac senior currency strategist Sean Callow said.

The yen strengthened 0.6 per cent against the dollar to ¥112.44, a one-month high, and Mr Callow noted that the yen was trading at ¥113.10 against the dollar “and looking stable when the story was released”.

The euro was trading just under $1.1770 against the dollar before firming 0.4 per cent to $1.1820. The pound also gained 0.4 per cent to $1.3240, its highest intraday level in more than two weeks.

Scotiabank foreign exchange strategist Qi Gao linked the currency movements to the report. He also noted existing pressure on the US dollar over uncertainty over the prospects for US tax cuts, despite news that the House of Representatives had voted to approve its version of tax reform proposals.

Source: Reuters – US dollar drops on reports Mueller subpoenaed Trump campaign officials

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