Dollar weakens

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TOKYO/SYDNEY: The dollar slid to a near two-month low against a basket of currencies on Monday as concerns mounted about the chances of U.S. fiscal stimulus after President Donald Trump´s failure to push through a healthcare reform bill.

Trump´s inability to deliver on a major election campaign promise marked a big setback for a Republican president whose own party controls Congress, and raised doubts whether he will be able to push through tax reforms and mega-spending packages.

“Concerns towards the Trump administration have been reignited after his healthcare legislation setback.This is resulting in a bout of risk aversion weighing on the dollar,” said Shin Kadota, senior strategist at Barclays in Tokyo.

“There isn´t much going for the dollar right now and the market will be bracing for its further decline.

“Dragged down by declining U.S. yields, the dollar index against a basket of major currencies was down 0.4 percent at 99.258, its lowest since Feb. 2. The index had risen to a 14-year high near 104.00 early in January when expectations for significant stimulus under the Trump presidency were at their peak.