(Updates to U.S. market open, adds data, quote, changes
dateline, previous LONDON)
* Dollar suffers after big setback for U.S. President Trump
* Dollar index falls to near 4-month low
* Dollar/yen hits 4-mth low
* Euro rises above $1.09 for first time since November
By Dion Rabouin
NEW YORK, March 27 The dollar fell to its lowest
since November against a basket of currencies on Monday as
investors lost confidence in prospects for a U.S. fiscal
spending boost under President Donald Trump after his failure to
pass a major healthcare reform bill.
Trump's inability to deliver on his campaign pledge to
overhaul the nation's healthcare system marked a big setback for
a Republican president whose own party controls Congress, and
raised doubts over whether he will be able to see through tax
reforms and a proposed spike in spending.
The dollar was down 0.65 percent on the day against the
basket of major currencies used to measure its broader strength
. It fell as low as 98.858, the lowest since Nov. 11.
"The assumption was that if you can’t get healthcare done
that some of the other things on his agenda, mainly the tax
reform, would be a harder sell," said John Doyle, director of
markets at Tempus Inc in Washington.
The reduced expectations for Trump's reflationary tax and
spending proposals also sent equities lower, with the U.S. S&P
500 down 0.75 percent.
The dollar index had risen to a 14-year high near 104.00 in
early January when expectations for inflation-boosting stimulus
under the Trump presidency were at their peak, with investors
betting big on the so-called "Trumpflation" trade.
Speculators increased bullish bets on the U.S. dollar in the
week up to last Tuesday for the third time on the trot, pushing
net longs to their highest since Jan. 31, Commodity Futures
Trading Commission (CFTC) data showed on Friday.
Against the yen, the dollar fell more than one
percent to 110.09, its weakest since Nov. 18. The dollar hit its
lowest against the Swiss franc, another traditional safe haven
for capital, since Nov. 9.
The euro reached $1.0904, its highest since Nov.
11. Sterling, the worst performer among the G10 group of major
currencies against the dollar this year, hit an 8-week high of
"The British pound is still close to its weakest level in 30
years, so it has some upside especially since data out of the
U.K. has been better," Doyle said. "The Japanese yen has had a
great run because stocks around the globe are down. So if you
start breaking it down into each individual currency there’s a
good reason, but overall it’s just a dollar negative day."
(Reporting by Dion Rabouin; Additional reporting by Ritvik
Carvalho in London; Editing by Chizu Nomiyama)