The U.S. dollar slumped against major currencies on Tuesday after Republicans abandoned their latest plan to repeal Obamacare.
The dollar index, which measures the greenback against a basket of currencies, dropped to its lowest level since September 2016 after it became clear that Republican leaders in the Senate did not have the votes to even begin debate on the legislation.
The collapse raises questions about the rest of President Trump’s economic agenda.
“It seems markets are losing confidence that President Trump will be able to deliver on his promised plans,” said FXTM strategist Hussein Sayed. “Six months in office and with no major legislation signed into law, it seems that the ‘The Art of the Deal’ hasn’t worked so far in U.S. politics.”
The dollar’s decline meant that it bought only 1.15 euros on Tuesday, its weakest level in 15 months. It also dropped against the yen, Swiss franc and British pound.