The dollar stumbled after a fresh setback to U.S. President Donald Trump's domestic agenda. Roselle Chen reports.
U.S. dollar fell to a ten-month low after a failed attempt to repeal and replace Obamacare. The new healthcare bill collapsed when two Republican senators refused to support it, leading to speculation that it'll most likely be withdrawn. That fed into a belief that other components of U.S. President Donald Trump's agenda - tax cuts and infrastructure spending - will fail as well. The Dow and S&P slumped on the news. Jeff Tomasulo of Vespula Capital: (SOUNDBITE) JEFF TOMASULO, CHIEF EXECUTIVE OFFICER, AND HEAD PORTFOLIO MANAGER, VESPULA CAPITAL, LLC (ENGLISH) SAYING: "We had inflation and retail sales data come back to us. It wasn't that good, so it put the Fed on alert "i'm not gonna hike interest rates as much, as fast as I might have done that if we had stronger inflation. And then the second thing is, we have to look at Europe, right? We have the ECB and if they become more hawkish, we're gonna see more pressure on the dollar, the euro gets stronger. So those are two headwinds I see for the U.S. dollar. So, I think the U.S. dollar goes lower, but we have a short-term upmove from there." Analysts say, U.S. economy will most likely continue to grow moderately. But according to recent Reuters poll, they no longer expect the Fed to hike rates in September. Instead, they say it could happen in the fourth quarter.