Investing.com – The dollar fell to eleventh-month lows against its rivals Tuesday, amid growing investor doubt over President Donald Trump’s ability to deliver on his economic agenda, after a healthcare bill aimed at replacing Obamacare failed to garner enough votes.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, fell by 0.53% to 94.42.
A Republican health care bill aimed at replacing Obamacare failed to get enough backing to proceed to a debate, sparking fresh investor concerns of a delay to tax-reform, as President Trump has reiterated several times that healthcare reform was needed before moving onto tax reform.
The euro was one of the main beneficiaries of a slump in the dollar, with EUR/USD up 0.71% to $1.1560, as traders continued to expect the European Central Bank will taper its ultra-accommodative monetary policy measures last this year.
Also adding to the greenback’s woes was an uptick in the oil-linked Canadian dollar, buoyed by a rebound in oil prices, with USD/CAD at $1.2656, down 0.33%.
GBP/USD traded at $1.3047, down 0.07%, as inflation data for June undershot analysts’ expectations, reducing the chance of a rate hike from the Bank of England.
The UK’s inflation rate dropped unexpectedly to 2.6% in June, down 2.9% in May, according to the Office National Statistics.
Economists had expected inflation to remained unchanged at 2.9%.
USD/JPY rose to Y112.02, down 0.51%.