The dollar sank on news that two additional Republican senators had opposed the Republican health-care bill. There are now four GOP senators who have voiced opposition to the bill, which is likely enough to stop it dead in its tracks: The GOP holds 52 seats in the Senate.
The dollar index, which measures the dollar against a basket of currencies, traded at 94.800 at 9:52 a.m. HK/SIN. Against the yen, the greenback fetched 112.22 yen, off levels around the 113 handle seen the last two weeks.
Meanwhile, the euro gained against the dollar to trade at $1.1530.
Investors were now more doubtful over the future of U.S. tax reforms, given the difficulty the health-care bill has faced in making progress, OANDA senior trader Stephen Innes told CNBC. The health-care bill being passed would have added money in the coffers for the government to enact subsequent tax reforms, Innes added.
“The market has a tendency to overreact, but it looks like another nail in the coffin (for the bill),” Innes said.
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