US dollar falls after White House turmoil

The US dollar index decreased on Tuesday following the news about the replacement of the country's secretary of state.

In late New York trading, the euro rose to $1.2397 from $1.2336 in the previous session, and the British pound rose to $1.3977 from $1.3906 in the previous session, Xinhua news agency reported.

The Australian dollar fell to $0.7867 from $0.7877.

The US dollar bought 106.64 Japanese yen, higher than 106.37 Japanese yen of the previous session. The US dollar was down to 0.9439 Swiss franc from 0.9466 Swiss franc, and it was up to 1.2942 Canadian dollars from 1.2828 Canadian dollars.

US President Donald Trump announced Tuesday that he decided to replace Secretary of State Rex Tillerson with CIA (Central Intelligence Agency) Director Mike Pompeo.

Tillerson's departure raised market concerns that the Trump administration will institute protectionist policies and be more aggressive in negotiating trade tariffs with other countries.

Analysts said historically tariffs led to weaker dollar during the presidencies of George W. Bush and Bill Clinton.

On the economic front, the Consumer Price Index (CPI) for all urban consumers increased 0.2 per cent in February on a seasonally adjusted basis, in line with market consensus, the US Labor Department reported on Tuesday.

Over the last 12 months, the all items index rose 2.2 per cent before seasonal adjustment.

The index for all items less food and energy increased 0.2 per cent in February, and it rose 1.8 per cent over the past 12 months, the same figure as the prior two months.

The dollar index, which measures the greenback against six major peers, fell 0.25 per cent at 89.675 in late trading.

--IANS

pgh/