Investing.com - 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 U.S. 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 the future 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”
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, dipped 0.68% to 98.91 by 12:40 EDT.
Elsewhere, sterling reached an eight-week high against the dollar of $1.2616, ahead of busy week, as the calendar features the start of formal Brexit proceedings, after Theresa May said that Article 50, would be triggered on March 29.
GBP/USD traded at $1.2567, up 0.75%, while EUR/USD gained 0.69% to $1.0873, after a stronger than expected German IFO print added a layer of support to the single currency.
Meanwhile, the USD/JPY offered the strongest moves overnight as the dollar fell more than 1% to a session low of 110.12, after investors piled into the yen, a safe haven currency, amid wobbles in U.S. equity markets.