The dollar is under pressure due to political uncertainty in the U.S.

The dollar on Monday fluctuates around a minimum of two and a half years against the euro, experiencing pressure due to political uncertainty in the U.S. and disappointing U.S. statistics, which increased doubts about the possibility of another increase in interest rates by the Fed this year.

31.Jul.17 10:24 AM
By Daria Zaytseva
Photo Toinnov.com

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The dollar is under pressure due to political uncertainty in the U.S.

The GDP growth of the world's largest economy accelerated to 2.6 % in the second quarter, coinciding with the forecasts of economists, but the figure for the first quarter was revised downward to 1.2 %.

Labor costs in the U.S. in the second quarter also grew less as expected, the data released on Friday showed, giving one more reason for concern that inflation will remain low.

The increased political uncertainty in the U.S. is also expected to force the dollar to maintain its defensive position.

The hopes that the Trump administration will implement tax reforms and economic incentives in the near future, seen as favorable factors for the national currency exchange rate, also declined after the Senate on Friday failed to abolish a number of key provisions of the Obamacare health reform developed by the administration of the previous American President Barack Obama.

The euro weakened slightly to $ 1.1735, but remains close to the maximum since January 2015 - $ 1.1777, reached on Thursday.

The dollar index, which tracks the dynamics of the U.S. currency against a basket of six major competitors, climbed 0.2 % to 93.405, having recouped some losses after falling by 0.6 % on Friday.

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