The dollar fell during Monday’s Asian session after U.S. President Donald Trump’s proposed repeal of the Affordable Care Act failed to gather the necessary support during Friday’s vote, raising questions as to whether his proposed tax cuts and spending plans will face similar roadblocks.
The dollar index fell near two-month lows, down 0.3 percent to 99.287 .DXY. Traders are bracing for the dollar’s further decline as the excitement surrounding Trump’s electoral victory wanes and the reality sets in that his plans may not be as easy to implement as he promised during his campaign. Following Friday’s vote against the healthcare plan Trump warned opponents within his Republican party that failure to support his agenda may result in their exclusion during future legislative measures.
U.S. futures equity futures slid to six-month lows after the vote while the S&P 500 saw its worst week last week since the start of 2017.
Oil Prices Continue Downslide
Oil prices continued to ease on Monday as U.S. drilling increases overshadowed OPEC’s proposed extension of their production cuts. U.S WTI crude futures lost 32 cents on Monday morning, trading down 0.7 percent to $47.65 per barrel. Brent crude futures were down 0.4 percent to $50.58 per barrel.
"OPEC and non-OPEC decided to get ahead of the game this weekend, announcing they are reviewing whether the output curb deal should be extended," said Jeffrey Halley of OANDA in Singapore, noting that this had given crude some support. OPEC is also expecting their cuts to have further impact in coming weeks as demands change moving into the summer months.