Greenback slides on Trump defeat

THE Australian dollar is lower against its US counterpart even though the US dollar slid to a near four-month low against a basket of currencies.

THE Australian dollar is lower against its US counterpart even though the US dollar slid to a near four-month low against a basket of currencies.

The greenback fell early on Monday US time as concerns mounted about the chances of US fiscal stimulus after the stinging defeat of President Donald Trump’s healthcare package in Congress.

At 0635 AEDT on Tuesday, the Australian dollar was worth 76.22 US cents, down from 76.33 US cents on Monday.

Westpac’s Imre Speizer said the local currency had ranged sideways between 76.08 US cents and 76.48. “The week-long downward correction persists with the 0.7600 US cent area still vulnerable,” he said in a note.

Meanwhile, the US dollar index fell 0.4 per cent to its lowest since November as investors lost confidence in prospects for a US fiscal spending boost under President Donald Trump after his healthcare reform bill failed to pass through Congress.

It recovered some ground but remained down 0.45 per cent on the day after earlier falling as low as 98.858, the lowest since November 11.

CURRENCY SNAPSHOT AT 0635 AEDT ON TUESDAY

One Australian dollar buys:

* 76.22 US cents, from 76.33 on Monday

* 84.30 Japanese yen, from 84.17 yen

* 70.17 euro cents, from 70.35 euro cents

(*Currency closes taken at 1700 AEDT previous local session)

Originally published as Greenback slides on Trump defeat