After a dramatic week in Washington that rattled financial markets, one possible silver lining for stock investors was the weaker dollar, which can support earnings of U.S. multinational companies with large foreign operations.
The dollar .DXY weakened 0.5 percent against a basket of currencies on Wednesday following reports that U.S. President Donald Trump tried to interfere with an investigation into his former national security adviser's ties with Russia, revelations that also sparked the S&P 500's .SPX biggest one-day drop in eight months.
The currency was on track for its biggest weekly percentage drop in a year, and so far in 2017 the dollar has pulled back 5 percent, having erased its post-U.S. election gains.
Movements in the dollar can be significant for U.S.-based multinational companies. The stronger the greenback is against other currencies, the less valuable foreign sales become when they are translated back into the U.S. currency for reporting purposes.
"A weaker dollar is arguably good for any company that sells overseas," said Alan Gayle, director of asset allocation at RidgeWorth Investments in Atlanta.Read more at Reuters