The dollar is sliding

Markets Insider

The US dollar index is down by 0.5% at 97.43 as of 7:37 a.m. ET.

The recent dollar sell-off has been in response to yields, a Morgan Stanley FX team led by Hans W. Redeker argued in a note to clients. Nevertheless, markets likely will monitor the ongoing political turmoil in Washington.

"In the near term, focus will be on former FBI director Comey's testimony, expected next Wednesday," they wrote. "USD should remain under pressure ahead of the event as markets price in an unfavorable outcome."

"Should Comey not bring any new information to the table, then USD is likely to rally," they added. "However, an outcome that would lead markets to reduce the probability of fiscal reform could weigh on USD."

Separately, the Baker Hughes oil-rig count will be out at 1 p.m. ET.

As for the rest of the world, here's the scoreboard as of 7:43 a.m. ET:

• The euro is up by 0.6% at 1.1178 against the dollar. Earlier, data showed German PPI rose by 0.4% month-over-month in April, above expectations of 0.2%, and above the prior reading of 0.0%.
• The British pound is up by 0.5% at 1.3009 against the dollar. On Friday, UK Prime Minister Theresa May revealed the Conservative Party's manifesto, which included targeting stricter boardroom pay, better worker protection, and defending businesses from overseas takeovers done largely for tax purposes.
• The Russian ruble is up by 0.9% at 57.0775 per dollar, while Brent crude oil, the international benchmark, is higher by 1.2% at $53.14 per barrel.
• The Japanese yen is up by 0.2% at 111.25 per dollar.