The U.S. dollar fell to a more than 2-1/2-year trough against the euro, hit by month-end portfolio adjustments and concern over the U.S. political outlook after the departure of White House communications director Anthony Scaramucci.
The single currency jumped to more than 2-1/2-year peaks against the dollar on Monday also lifted by euro zone inflation data that kept expectations for a more hawkish European Central Bank alive. EUR/USD stretched to trade more than 0.8 percent higher on the day after the New York Times reported U.S. President Donald Trump had decided to remove Scaramucci. It was up as much as 1.1845.
The White House later confirmed Scaramucci was leaving the job after little over a week.
The dollar index, a gauge of the greenback's strength against a basket of six major currencies, touched its lowest since early May 2016 of 92.85 after the news of Scaramucci's departure. USD/JPU also slipped to a more than six-week low of 110.32.
Concerns that low U.S. inflation could lead to a more dovish Federal Reserve have also hurt the greenback.
The euro was boosted earlier in the day as traders bought the currency as part of month-end portfolio adjustments, participants said, and on the expectations the ECB was on track to tighten monetary policy.
