Dollar plunges as investors spooked by political chaos
Stocks dropped and foreign currencies gained against the US dollar as the weeklong drumbeat of bad news surrounding the Trump administration sows doubts about whether the president's pro-business policies will be enacted.
Markets wordwide fell on reports that Donald Trump reportedly asked then-FBI Director James Comey to drop his investigation into former National Security Adviser Michael Flynn's relationship with Russia.
The Standard & Poor's 500-stock index and Dow Jones industrial average were off more than 1pc, Nasdaq was down 1.6pc and the Russell 2000 gave up 2 percent by early afternoon trading yesterday.
The dollar index sank, erasing all of the gains inspired by Mr Trump's pro-growth stance after his November election victory.
The euro hit its highest level since November 7, while prices of gold hit a one-month high.
The market turbulance comes amid near-record highs following an eight-year bull run fuelled by strong earnings, especially in the technology sector. The stock market has been on a tear since the November election, bolstered in part by a president who has endorsed business-friendly policies such deregulation and tax cuts.
The markets have also been remarkably level, with the S&P 500 fluctuating less than 0.5 percent for 15 straight trading days.