The dollar was lower Wednesday as Trump fired FBI Director James Comey.
The dollar index was off 0.12% at 99.33 at 08:30 ET.
Comey was sacked because of his perceived mishandling of sensitive investigations.
That raised concerns about the Trump administration's ability to deliver on its pro-growth agenda.
The safe-haven yen made gains against the greenback amid ongoing concerns about the Korean peninsula.
Chinese producer price inflation slowed more than expected in April to 6.4%.
The dollar had advanced Tuesday as hawkish comments by FOMC members reinforced the view of further U.S. tightening this year.
FOMC member Robert Kaplan reiterated his view that three hikes this year was appropriate.
Investing.com's Fed Rate Monitor Tool currently shows the odds of a June hike at over 77%.
The euro was steady below $1.09 ahead of a speech by ECB chief Mario Draghi.
The pound was firm above $1.29 as campaigning for the June U.K. general election gathers pace.