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President Trump's Failure to Repeal and Replace Obamacare Causes U.S. Dollar to Tumble

The U.S. dollar slumped to a four-month low Monday as investors begin what could be a major recalibration of growth and inflation assumptions in the world's biggest economy.

The U.S. dollar slumped to a four-month low Monday as investors begin what could be a major recalibration of growth and inflation assumptions in the world's biggest economy and the ripple effect that will have on various global currencies.

Market reaction to Friday's decision by House Republicans to pull a vote on repealing and replacing the Affordable Care Act has mostly been felt in the currency markets, where the dollar has sunk to its lowest level against a basket of six global currencies since Nov. 11.

The overnight move lifted the yen to multimonth highs against the greenback and boosted the euro, which also found support from a solid win in regional German elections for Chancellor Angela Merkel's Christian Democratic Union of Germany Party and traded 0.5% higher, at 108.54.

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