Forex - Dollar extends losses sinks to 10-month lows

© Reuters. Dollar extends losses, sinks to 10-month lows

Investing.com - The U.S. dollar sank to 10-month lows against a basket of the other major currencies on Tuesday, after an attempt to pass healthcare reform collapsed and investors remained doubtful over the Federal Reserve’s rate hike plans.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.33% to 94.61 by 03.44 a.m. ET (07.44 a.m. GMT).

The index touched an overnight low of 94.50, the lowest trough since September 9, 2016.

The dollar came under renewed selling pressure after collapsed late Monday, delivering a major policy blow to the Trump administration.

Around half of the cuts in health-care spending were earmarked to finance proposed tax cuts. The failure to deliver healthcare reform added to disappointment over the progress of President Donald Trump’s economic agenda.

The dollar was already on the defensive after Friday’s weak U.S. inflation and retail sales data added to doubts that the Fed will be able to raise interest rates again this year.

The dollar was weaker against the yen, with down 0.3% at 112.27 after falling as low as 111.99 overnight.

The euro rose to fresh 14-month highs against the dollar, with touching overnight highs of 1.1538. It was last at 1.1516.

Sterling was near 10-month highs, with rising 0.34% to 1.3100.

The Australian dollar jumped to two-year highs, with adding 1.47% to trade at 0.7917 after t showed it turning more upbeat on the economic outlook.

The New Zealand dollar was higher, with rising 0.44% to 0.7349. The kiwi initially turned lower overnight before regaining ground after indicated that the country’s central bank will keep interest rates on hold for longer.

The Canadian dollar was near Monday’s 14-month highs, with last at 1.2660.

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