SINGAPORE (Reuters) – The dollar set a one-week low against the yen on Tuesday as investors turned cautious after U.S. President Donald Trump’s former campaign manager was charged with money laundering in the federal probe into Russian meddling in the 2016 presidential election.
Analysts said the dollar was also weighed down by reports that Trump was likely to pick Federal Reserve Governor Jerome Powell as the next head of the U.S. central bank.
Powell is seen as being a centrist on monetary policy and holding less hawkish views on policy than Stanford University economist John Taylor, who has been viewed as another leading candidate for the post.
The dollar held steady at 113.15 yen JPY=, after slipping as low as 112.97 yen in early Asian trade, its lowest level since Oct. 20.
Federal investigators probing Russian interference in the 2016 U.S. election charged Trump’s former campaign manager, Paul Manafort, and another aide, Rick Gates, with money laundering on Monday.
The latest developments in U.S. Justice Department Special Counsel Robert Mueller’s investigation into alleged Russian efforts to tilt the 2016 presidential election, pressured the dollar, said Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore.
“It’s weighing on dollar/yen a little bit. I think there’s a little bit of uncertainty,” Innes said, adding the yen drew some support as risk sentiment was looking a bit wobbly.