Investing.com - The dollar pushed lower against the other major currencies on Friday, as investors remained cautious following a terrorist attack in Spain and as U.S. political tensions continued to dampen demand for the greenback.
Sentiment on the greenback remained vulnerable after eight chief executives quit two business advisory councils on Wednesday, in protest over U.S. President Donald Trump’s controversial remarks on weekend violence in Virginia.
The U.S. President reacted to the departures by disbanding the councils – the American Manufacturing Council and the Strategic and Policy Forum.
White House Economic Adviser Gary Cohn denied rumors of his possible departure late Thursday. However, growing opposition to Trump’s positions, including from within his own party, have fueled concerns over the administration’s ability to implement its political agenda.
The dollar was also under pressure after the minutes of the Federal Reserve’s July policy meeting released on Wednesday showed that members of the central bank remain divided over the need to raise interest rates further this year, citing low inflation.
The yen and Swiss franc were higher, with USD/JPY down 0.48% at 109.05 and with USD/CHF slid 0.25% to trade at 0.9607.
Demand for the safe-haven currencies strengthened after a van rammed into pedestrians in a crowded tourist area of Barcelona on Thursday evening, killing at least 13 people and injuring 100 others.
The Islamic State claimed responsibility for the incident. S
Shortly after, a second attack was perpetrated in Cambrils, a coastal town south of Barcelona, where police said they killed five attackers.
EUR/USD rose 0.30% to 1.1759, off the previous session’s three-week low of 1.1662, while GBP/USD gained 0.26% to 1.2901.
The Australian and New Zealand dollars were stronger, with AUD/USD up 0.49% at 0.7924 and with NZD/USD climbing 0.58% to 0.7325.
Meanwhile, USD/CAD shed 0.28% to trade at 1.2644.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.27% at 93.39.