The dollar hit six-month lows amid fresh Trump controversy and weak US economic data.
Reports that President Donald Trump had asked FBI director James Comey to halt the investigation into national security adviser Michael Flynn stunned commentators.
Further adding to the downward pressure on the dollar was the release of weaker US housing data.
The US dollar fell against a basket of currencies and was down by around 0.7% against the Japanese yen this morning.
According to reports first aired in the New York Times on Tuesday, Comey wrote a memo following a meeting with Trump on 14 February, claiming the president had asked him to end the investigation into Flynn. National security adviser Flynn was forced out of office in February over his alleged conversations with Russia´s ambassador. Comey, meanwhile, was sacked by Trump last week amid criticism over his handling into the inquiry over Hillary Clinton´s emails.
The latest development further fuels the ongoing speculation that Trump could eventually face impeachment.