Trump Healthcare Failure Sends Dollar to 10-Month Low
Local Editor
The US dollar sank to a 10-month low against a basket of major currencies on Tuesday, hit by the latest collapse of President Donald Trump's efforts to deliver a new healthcare bill in a market deeply worried by the pace of US growth.
Meanwhile, the Australian dollar was by far the biggest beneficiary of another slide for the greenback, jumping 1.5 percent to more than two-year highs after minutes from the Reserve Bank's last policy meeting showed it turning more upbeat on the economy.
In four weeks dominated by expectations that by doubts over the Federal Reserve's ability to raise interest rates further, and signs that other major central banks are finally turning more hawkish, the dollar is now down more than 3 percent.
Since hitting a 14-year peak of 103.82 on Jan. 3, at 94.830 on Tuesday, the dollar index was down 8.8 percent.
"Clearly anything that comes along at the moment just corroborates the market's negative attitude on the dollar," said Neil Mellor, senior FX strategist with Bank of New York Mellon in London.
"There's just not enough inflation at the moment. And anything like this [defeat for Trump] is liable to push it lower."
Two more Republican Senators, Jerry Moran and Mike Lee, announced their opposition late on Monday to a revised Republican healthcare bill, leaving efforts to pass the legislation in chaos.
"If the bills won't pass, there will be no money for tax cuts. The implementation of his fiscal policy will be difficult," said Bart Wakabayashi, Tokyo Branch Manager of State Street.
Source: News Agencies, Edited by website team
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