* Political tumult in Washington weighs on greenback
* Dollar index poised for weekly loss of 1.6 pct
* Euro hits 6-month high
* Graphic: World FX rates in 2017 tmsnrt.rs/2egbfVh
By Jemima Kelly
LONDON, May 19 The dollar was on track to record
its worst week against a basket of currencies since July on
Friday, having given up almost all the gains made since Donald
Trump, now surrounded by political worries, was elected U.S.
president last year.
The dollar index, which measures the greenback against a
basket of six major rivals including a heavily weighted euro,
has fallen around 1.8 percent this week. On Wednesday it
hit its lowest since Nov. 9, the day of the U.S. election
results, and traded close to that level on Friday.
Uproar over Trump's firing of James Comey as FBI director
and allegations, repeatedly denied, of links between the
president's team and Russia, have pressured the dollar.
The U.S. currency has also suffered from a resurgent euro,
which has gained more than 2 percent this week - on track for
its best performance since June - and rose 0.7 percent on Friday
to hit a six-month high of $1.11745.
That resurgence, said analysts, was a result of a renewed
focus on a possible winding back of the European Central Bank's
expansive monetary stimulus programme, with data pointing to a
robust recovery in the euro zone.
"Now that the French election is out of the way, political
risk has fallen in Europe, and markets are refocusing on
monetary policy, where the focus is on imminent tightening from
the ECB," said Commerzbank currency strategist Thu Lan Nguyen,
Analysts the dollar was also being pressured by fears that
Trump's travails could delay or derail promised fiscal stimulus
"The market is fearful now that the cuts in regulation, the
tax incentives, etc., just won't be forthcoming because the
administration will be so busy fire-fighting scandals, it won't
be able to push through any of its promises," said Rabobank
currency strategist Jane Foley, in London.
Foley added that worries over Trump had also coincided with
a run of weaker U.S. data that has seen a slight pull-back of
expectations that the Federal Reserve will hike interest rates
next month, which had also pressured the dollar.
Against the safe-haven yen, the dollar edged down 0.1
percent to 111.35 and was on track for its first week of
falls in five, with risk appetite having fallen across markets
For Reuters Live Markets blog on European and UK stock
markets see reuters://realtime/verb=Open/url=http://emea1.apps.cp.extranet.thomsonreuters.biz/cms/?pageId=livemarkets
(Additional reporting by Masayuki Kitano in Singapore; Editing
by Andrew Heavens)