New York, US (BBN) - The US dollar fell slightly in a light Asian data day with the market in a holding pattern as assessments are reviewed on prospects for a massive US tax cut and major spending plans this year following President Donald Trump's defeat on a repeal and replacement of Obamacare.
The US dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, eased 0.02 per cent at 99.01.
USD/JPY changed hands at 110.63, down 0.02 per cent, while AUD/USD gained 0.16 per cent to 0.7629. GBP/USD traded at 1.2565, up 0.06 per cent.
Overnight, the dollar fell against a basket of major currencies on Monday, as investors dumped the dollar amid doubts over President Trump’s ability to deliver on his pro-growth economic agenda.
The dollar dropped to its lowest level since November, as the US House of Representatives’ decision to withdrew a healthcare bill to repeal and replace Obamacare on Friday, continued to weigh on sentiment.
Investors viewed the failure to pass the bill as a major setback for the Trump administration and started to question President Trump’s ability to push through more ‘market sensitive’ legislation such as tax reform.
House Speaker Ryan, added to fears that the healthcare reform setback could impact future the success of future legislation being passed, after he admitted on Friday that “it [the withdrawal of the healthcare bill] does make tax reform more difficult but it does not make it impossible”
Elsewhere, sterling reached an eight-week high against the dollar as the calendar features the start of formal Brexit proceedings, after Theresa May said that Article 50, would be triggered on March 29.
BBN/SK/AD