CURRENCIES: Dollar Falls After Senate Republicans Abandon Bill To Replace Obamacare

By Carla Mozee and Victor Reklaitis, MarketWatch Features Dow Jones Newswires

Australian dollar leaps after RBA seen as hawkish

Continue Reading Below

The dollar dropped against major rivals Tuesday, with selling picking up after Republican leaders in the Senate late Monday ditched their effort to repeal and simultaneously replace much of the Affordable Care Act.

Senate lawmakers will instead vote in the coming days on a bill to unravel most of the ACA, popularly known as "Obamacare," and they look likely to leave any replacement to a later date. The failure of the health care plan is seen as raising fresh doubts about President Donald Trump's ability to push through his pro-growth agenda.

The ICE U.S. Dollar Index was down 0.4% at 94.76, touching levels last seen in September.

"It seems markets are losing confidence that President Trump will be able to deliver on his promised plans," said FXTM chief market strategist Hussein Sayed, in a note.

Read:GOP health-care bill scuttled; McConnell calls for repeal vote (http://www.marketwatch.com/story/health-care-overhaul-seems-sunk-as-two-more-republicans-oppose-senate-bill-2017-07-17)

Continue Reading Below

And see:How the delayed health-care vote may also slow tax reform (http://www.marketwatch.com/story/how-the-delayed-health-care-vote-may-also-slow-tax-reform-2017-07-17)

Meanwhile, the Australian dollar rose to $0.7912 from $0.7800 late Monday in New York in the wake of what were perceived as hawkish remarks (http://www.marketwatch.com/story/aussie-dollar-jumps-on-hints-rba-may-turn-hawkish-2017-07-18) by the Reserve Bank of Australia. The Aussie dollar was reaching its highest mark against the buck since May 2015.

The euro changed hands at $1.1525, up from $1.1479 late Monday and trading at levels last seen in May 2016.

(END) Dow Jones Newswires

July 18, 2017 04:24 ET (08:24 GMT)