After a number of depressing sessions, the U.S. dollar escapes from its 10-month low on Wednesday as it inched higher against its major peers. The news regarding Republican senators failing to pass the health care bill incited concerns on President Trump’s upcoming agenda’s.
The index which tracks the value of the greenback relative to its major opposing currencies, the U.S. dollar index, rose more than 0.2 percent to 94.780 following its drop last Tuesday at 94.476, considered its worst level since Sept 2016.
The efforts of Republicans in repealing Obamacare failed in the U.S. Senate on the previous day. This heightened concerns on the abilities of U.S. President Donald Trump to still enact his economic plans for the country through a Congress which is currently divided; the plans include stimulus and tax reforms.
Speculations regarding the U.S. Federal Reserve being watchful on lifting rates also influenced the movement of the dollar. Released economic figures last Tuesday suggested that import prices in the United States had been declining for two straight months in June. This is driven by the falling petroleum products which showed inflation pressures are likely to stay on the negative territory for a while.
Meanwhile in other currencies, the euro was slightly lower by 0.2 percent to $1.1534 after advancing more than $1.1583 last Tuesday. This Thursday, the European Central Bank (ECB) will have a policy meeting and there are possibilities that participants will regulate their language as they edge the bank on tightening policy.