Investing.com - The dollar was holding above four-month lows against the yen on Thursday as investors took a breather ahead of a crucial vote on the Republican healthcare bill in the U.S. in what is a major test for President Trump.
USD/JPY was steady at 111.17 after plumbing 110.72 on Wednesday, the weakest level since November 22.
The dollar has come under heavy selling pressure in recent sessions amid widespread risk aversion spurred by doubts over the Trump administration’s ability to push through the pro-growth economic agenda promised by the president.
Investors viewed the Trump administration's struggles to push through a healthcare overhaul as a sign he may also face setbacks delivering on other policy pledges including corporate tax cuts, regulatory reform and infrastructure spending.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, ticked up 0.09% to 99.57, after falling to a seven week low of 99.34 in the previous session.
The euro was a touch lower, with EUR/USD dipping 0.08% to 1.0786 after hitting a seven week high of 1.0824 on Wednesday.
The single currency has been boosted by expectations for monetary tightening by the European Central Bank later this year and growing hopes that the far-right anti-EU leader Marine Le Pen will be defeated in the French presidential elections.
Sterling was little changed near one-month highs at 1.2490, ahead of a UK retail sales report which will offer insight into how consumer spending is holding up in the face of rising inflation and weak wage growth.
The pound briefly dipped on Wednesday after a terrorist attack in central London, before recovering.
The euro was slightly lower against sterling, with EUR/GBP slipping 0.15% to 0.8633.