You are here: Home » Reuters » News
Business Standard

Dollar falls, but Wall Street shrugs off Trump ouster of Tillerson

Reuters  |  NEW YORK 

By Nick Brown

(Reuters) - U. S. Donald Trump's high-profile ouster of sent the U. S. dollar down slightly on Tuesday, with falling after an initial jump.

Trump gave Tillerson the boot on Tuesday after a series of public rifts over policy on North Korea, and Iran, and replaced his with loyalist

His firing - the biggest shakeup of since he took office in January 2017 - was announced by the on

in called it "another sign of a problem in the "

The dollar index, which measures the greenback against a basket of major currencies, fell 0.28 percent, with the euro up 0.52 percent at $1.2396.

initially jumped on the Tillerson news, with investors seeing signs that a deal on Iran's nuclear program could collapse, but the trend reversed later in the day.

MSCI's gauge of stocks across the globe shed 0.06 percent, while the pan-European stock index lost 0.94 percent.

Analysts were largely unmoved by the departure of Tillerson, the latest in a cavalcade of exits from Trump's White House, and suggested its market impact could be short-lived.

David Kotok, of money management firm Cumberland in Sarasota, Florida, said such turnover is "now regularly accepted for the markets."

"I don't think Tillerson out and a replacement is a shock to the market that lasts very much at all," Kotok said.

Separately, the announced its Consumer Price Index rose 0.2 percent in February, in line with economists' expectations. The data suggests the Federal Reserve remains on track to raise interest rates at a gradual pace this year, which boosted some markets.


S. crude fell 1.21 percent to $60.62 per barrel and Brent was at $64.57, down 0.59 percent.

U. S. Treasuries retraced some early losses after choppy trading following the on Tillerson. Benchmark 10-year notes last rose 4/32 in price to yield 2.8554 percent, from 2.87 percent late on Monday.

The consumer price data seemed to offset any negative impact of the Tillerson ouster on U. S. stocks, with Wall Street seesawing slightly in morning trading.

The Dow Jones Industrial Average rose 11.13 points, or 0.04 percent, to 25,189.74, the lost 2.28 points, or 0.08 percent, to 2,780.74 and the dropped 32.05 points, or 0.42 percent, to 7,556.28.

European stocks fell across the board, with some analysts suggesting Tillerson's departure fuelled concerns that extremists are gaining influence in

pointed to fears that the move "will give the nationalists greater power within the over the globalists."

Emerging market stocks rose 0.26 percent. MSCI's broadest index of shares outside closed 0.22 percent higher, while Japan's Nikkei rose 0.66 percent.

(Additional reporting by Ritvik Carvalho, and Kate Duguid; Editing by Bernadette Baum)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, March 13 2018. 22:12 IST