Washington 17 May (ANA) - The US dollar has fallen sharply against a slew of currencies, pressured by mounting concerns of political turmoil after reports that Donald Trump asked former FBI Director James Comey to end an investigation into Michael Flynn. The New York Times reported on Tuesday that the President had asked Mr Comey to terminate the investigation into the former National Security Adviser during an Oval Office visit back in February. "I hope you can see your way clear to letting this go, to letting Flynn go," the President said to Mr Comey during that meeting, according to the memo. "He is a good guy. I hope you can let this go."

The reports sparked speculation that obstruction of justice charges might be laid against Mr Trump, which in turn weakened confidence in the President’s  power to implement some of the aggressive stimulus measures he has been championing. The prospect of tax cuts and regulatory rollback have been propping up stocks and the dollar since late last year. On Wednesday morning in London, the dollar was around 0.7 per cent lower against Japan’s yen. “Markets have shifted from the 'USD euphoria' that was the main theme immediately after Mr Trump’s victory to a more sober valuation of the effective ability of the US administration to implement its policy agenda and its goals,” strategists at UniCredit wrote in a note.(ANA)

FA/ANA/17 May 2017--------