Dollar strengthens

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TOKYO: The dollar inched higher on Monday, but remained close to six-month lows against a basket of currencies as investors assessed the impact of the latest bout of U.S. political turmoil and a resurgent euro.

The dollar index, which tracks the greenback against a basket of six major rivals, steadied 0.2 percent from Friday´s late U.S. levels to 97.292. But it was hovering not far from the previous session´s low of 97.080, which was its deepest trough since Nov. 9. U.S. President Donald Trump, now on a trip to the Middle East, left behind political drama in Washington that some fear could derail his administration´s promises of tax reform and fiscal stimulus, if not his presidency.

Those fears threaten to offset much of the dollar-positive sentiment genmerated by expectations for a U.S. interest rate rise next month. Trump´s budget proposal, set to be unveiled on Tuesday, will include cuts to Medicaid and propose changes to other assistance programs for low-income citizens, the Washington Post reported on Sunday.

Uproar over Trump´s recent firing of FBI Director James Comey, who was overseeing an investigation into possible links between the president´s election campaign team and Russia, has pressured the dollar.