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Singapore - The dollar weakened for a fifth straight day and the euro soared amid a report US President Donald Trump revealed classified information to a Russian diplomat. Oil extended gains while stocks were mixed.
The euro jumped to the highest level since the election of Trump in November. The yen also strengthened with the Mexican peso and South Korean won. Crude rose for a fifth day as Goldman Sachs said willingness by Saudi Arabia and Russia to extend output cuts will likely sway other countries to follow suit.
Equities in Asia climbed, following a rally that sent the S&P 500 Index above 2 400 for the first time, while European shares slipped.
Trump’s top foreign policy advisers raced to contain political damage from a report saying he revealed sensitive classified information to Russia’s top diplomat during an Oval Office meeting last week.
The president is already fending off questions about his firing of FBI Director James Comey, and the controversies are raising concerns over Trump’s ability to deliver on his economic agenda.
“The issue with Comey is likely to drag on while the latest disclosure issue with Russia, if it develops into a bigger problem, will raise concerns about the US administration and definitely be dollar-selling factor,” said Jun Kato, a senior fund manager at Shinkin Asset Management in Tokyo.
Global equities have rallied to a record this week sparked by optimism over China’s sweeping plan to boost global infrastructure that was unveiled in Beijing.
The surge in oil added to the bullish sentiment, boosting commodity currencies, even as concern grows over the strength of the global economy. Chinese industrial production and retail data came in weaker than expected Monday, after American retail sales and inflation also cast a shadow on growth.
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