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* Dollar on track to post monthly losses
* Pound reverses earlier YouGov projection losses
By Gertrude Chavez-Dreyfuss
NEW YORK, May 31 The dollar fell broadly on
Wednesday, sliding to two-week lows against the yen and a
one-week trough versus the euro amid growing political tension
The greenback in May was on track to post its worst monthly
performance against the euro in more than a year, even as the
European Central Bank committed to keep its stimulus plan in the
Against a basket of six major currencies, the dollar was set
to finish the month on a negative note as well, notching its
largest monthly percentage loss since January.
"The dollar remains pressured by the mounting dysfunction in
Washington that has all but eliminated hopes for a bold fiscal
stimulus package from the Trump administration," said Omer
Esiner, chief market analyst at Commonwealth Foreign Exchange in
President Donald Trump's administration has been the focus
of independent investigations by the Federal Bureau of
Investigation and several congressional panels over alleged
Russian meddling in the 2016 presidential election and potential
collusion by the Trump campaign.
U.S. economic data on Wednesday was mixed.
Pending home sales fell for a second straight month in
April, hindered by a lack of supply, while an index of U.S.
Midwest manufacturing activity rose in May.
These reports have little bearing on expectations for next
month's expected tightening by the Federal Reserve, although the
number of hikes this year is still up for debate.
The focus will be on Friday's U.S. non-farm payrolls report,
which could set the dollar's tone in the short term. A Reuters
poll showed Wall Street economists forecasting 185,000 new jobs
Britain's pound, meanwhile, recovered from a half a percent
drop on Wednesday after a poll showed the country's ruling
Conservative party still in the lead, overriding a previous
projection of a hung parliament in elections next week.
In late morning trade, the dollar was down 0.2 percent at
110.51 yen after earlier falling to two-week lows
The euro was up 0.6 percent at $1.1247, while the
dollar index fell to 96.98.
Sterling, on the other hand, was up 0.4 percent at $1.2913
, recovering from a low of $1.2770 hit in London trading.
(Reporting by Gertrude Chavez-Dreyfuss; Editing by Andrea