The dollar slipped to its weakest level since November versus its major rivals on Monday as forex investors lost confidence that President Trump will deliver the expected fiscal stimulus after his failure to pass a major healthcare reform bill.
Trump's unsuccessful bid to repeal and replace Obama care dealt a big blow for the Republican President. Concern was raised over his ability to deliver on proposed tax reforms and a spike in spending.
The dollar bounced back broadly during the American session, but stayed down 0.45 percent on the day against the basket of currencies. Dollar Index earlier fell as low as 98.858, the lowest since Nov. 11.
USD/JPY, fell to 110.10, its weakest since Nov. 18 and while USD/CHF, another traditional safe haven, dropped to its deepest since Nov. 9 at 0.9811.
EUR/USD hit 1.0904, its strongest since Nov. 11. Cable, the weakest performer among the Group of 10 major currencies against the dollar this year, jumped to an 8-week high of 1.2615.
The greenback rose more than 3 percent against the South African rand after the country's Finance Minister Pravin Gordhan was asked by President Jacob Zuma to return early from an investor roadshow abroad. Zuma's decision led to media speculation of a looming cabinet reshuffle and that Gordhan may be sacked.
