Investing.com - The dollar steadied on Tuesday, a day after falling to multi-month lows against a basket of the other major currencies amid growing doubts over the Trump administration’s ability to push through its economic agenda.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 99.07. The index plumbed 98.67 on Monday, its lowest trough since November 11.
The dollar came under heavy selling pressure as the failure of U.S. Republicans to get enough support for their own bill to overhaul healthcare rattled investors.
The setback for the White House added to skepticism over the Trump administration’s ability to work with Congress to deliver on the president’s pro-growth economic agenda, including tax cuts and infrastructure spending.
The dollar index had surged to almost 14-year highs in early January propelled higher by expectations for a strong economic recovery and higher inflation, the so-called ‘Trump Trade’.
The dollar was almost unchanged against the yen, with USD/JPY at 110.73 after falling as low as 110.10 on Monday, the lowest level since November 18.
The euro was a touch lower, with EUR/USD dipping 0.09% to 1.0853 after rising to peaks of 1.0905 in the previous session, the most since November 11.
Sterling was near one-month highs, with GBP/USD rising 0.14% to 1.2576 as investors braced for British Prime Minister Theresa May to trigger Article 50 of the Lisbon Treaty on Wednesday, formally beginning the two year process of exiting the European Union.
The pound was also higher against the euro, with EUR/GBP down 0.2% to 0.8631.
The Australian and New Zealand dollars were both lower, with AUD/USD down 0.2% to 0.7602 and NZD/USD down 0.37% to 0.7021.