The U.S. dollar has recovered after falling when a formal impeachment inquiry began against President Donald Trump, according to Reuters.
The dollar fell on Tuesday after Speaker Nancy Pelosi (D) announced that the House of Representatives would initiate a formal inquiry, saying Trump had undermined national security and violated the U.S. Constitution.
Although the dollar recovered in early European trading, analysts said the impeachment inquiry would increase pressure on the U.S. currency.
It is still uncertain whether the inquiry will lead to impeachment, or conviction, which needs a two-thirds majority in the Republican-controlled Senate.
Nevertheless, the political uncertainty is considered negative for the dollar, Reuters said.
The dollar index was last up 0.2% at 98.545. Against the euro, it rose 0.2% to $1.0996.
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The yen dropped 0.2% against the dollar to 107.31 yen, whilst the Swiss franc, edged up 0.2% against the euro to 1.0845 francs.
Meanwhile, sterling fell by 0.4% to $1.2445, after rising on Tuesday, following Britain’s Supreme Court ruling that Boris Johnson had unlawfully suspended parliament.