US Dollar Declines Against Yen on Uncertainty Surrounding Congressional Support for Trump

The US dollar declined against the Japanese yen on Monday as investors worried that President Donald Trump might not have enough support in Congress to fulfill his economic agenda.

Today’s concerns came after Democrats managed to gather enough support to block a US Senate confirmation vote for Neil Gorsuch, Trump’s nominee for Supreme Court. The new political development added to worries that were raised when Trump and House Speaker Paul Ryan failed to amass enough support for the Republican healthcare bill in Congress. This had led the president to decide to withdraw the bill before Congress gets to choose its future.

The US dollar weakened as investors worried that the inability to achieve the Trump administration’s goals is signaling that the president will have a hard time bringing his promises to reality. Trump had promised during his presidential election campaign to cut corporate taxes and increase infrastructure spending, but no further details were revealed. The greenback, which rallied on these promises following Trump’s election victory in November, is failing to draw more support from them as investors grow impatient.

USD/JPY traded at 110.90 as of 21:10 GMT on Monday, from 110.85 as of 19:55 GMT, the pair’s lowest level since March 29. USD/JPY started the week at 111.34.

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