The US dollar's movement appeared limited in Tuesday's trading, slightly weaker than the strengthening at the beginning of the week as the market followed the developments in the issue of the dismissal of the Federal Reserve (Fed) governor by President Donald Trump.
Trump acted to fire Fed governor Lisa Cook who is facing allegations of fraudulent home asset purchases.
Urged to resign by Trump, Cook insisted on not leaving the central bank, making Trump take more aggressive steps using the law.
In the latest development, Cook has now filed a lawsuit to prevent Trump from firing her.
According to Cook's lawyer, Trump's attempt to fire her is based only on a reference letter, and has no factual or legal basis.
Therefore, a lawsuit will be filed to challenge the illegal action.
Other major currencies in the market are seen gradually recovering after the pressure of the strengthening of the US dollar at the beginning of the week.
However, the development of the focus issue and indications in the latest economic data will continue to be watched in assessing the further direction of the market.
The US dollar's decline in the New York session yesterday was capped by positive figures in durable goods orders data and a survey of US consumer confidence.
The next indicator will be the US second-quarter economic growth report due on Thursday before the PCE price index will be the focus of the Fed in the final session of the week.
