Dollar lowers

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TOKYO: The dollar wallowed near six-month lows against a basket of major currencies on Thursday as the U.S. political crisis appeared to deepen, threatening to delay efforts by President Donald Trump to implement his economic stimulus plans.

"Political instability in the United States is shaking markets. You put a brake on investments to the U.S. when you see those headlines," said Bart Wakabayashi, Tokyo Branch Manager of State Street Bank. The Justice Department appointed a former FBI director as special counsel to investigate possible collusion between President Donald Trump´s 2016 campaign team and Russia. The appointment of a special counsel follows Trump´s dismissal of James Comey, his FBI director who was investigating Russia´s role in the U.S. election. Media then reported that Trump may have interfered with a federal investigation, a serious allegation that could even lead to his impeachment if verified. "Some politicians might try to begin the impeachment process, and if they do, that would take much time to carry it out, and while it is ongoing, it would be almost impossible to push fiscal stimulus through," said Masashi Murata, currency strategist for Brown Brothers Harriman in Tokyo, noting that it took almost two years for the Bill Clinton impeachment process to proceed though Congress.