Looks like “Happy Days” are over for now as the US dollar has just reportedly slid to a four-month low against a slew of currencies on Monday as investors are weighing the prospects of a U.S. fiscal spending boost under President Donald Trump after his failure to push through a key healthcare reform bill. According to the report, Trump’s inability to deliver on a major election campaign pledge has marked a big setback for a Republican president whose own party controls Congress and is raising many doubts over whether he will be able to see through tax reforms and a big spike in spending.
Excerpt From Reuters:
The dollar was down 0.5 percent on the day against the basket of other major currencies used to measure its broader strength .DXY. At 99.038 in early London trade, the index had been at its lowest since three days after Trump was elected in November, before recovering to 99.132 by 1145 GMT. “I think the market is trying to establish whether or not there is too much optimism about reflation priced into the U.S. dollar,” said Rabobank currency strategist Jane Foley, in London.