• The dollar slid to a near two-month low against a basket of currencies early on Monday as concerns mounted about the chances of U.S. fiscal stimulus after the stinging defeat of President Donald Trump's healthcare package.
The inability to overhaul the U.S. healthcare system, a major election campaign promise of Trump and his allies, marked a significant political setback for the president in a Congress controlled by his own party.
The blow so early in Trump's term has heightened worries about the chances of economy-boosting steps being enacted, such as tax reforms and big spending packages.
The dollar index against a basket of major currencies was down 0.3 percent at 99.299 .DXY after going as low as 99.292, its lowest since Feb. 2.
- The index had risen to a 14-year high near 104.00 early in January when expectations for significant stimulus under the Trump presidency were at their peak.
- In a sign of stress for Wall Street stocks, U.S. equity index futures fell to a six-week low.
- The dollar was down 0.8 percent at 110.470 yen JPY= after touching 110.420, its weakest since Nov. 22.
- The euro was 0.45 percent higher at $1.0847 EUR= following a rise to $1.0849, its strongest early December.
• U.S. President Donald Trump's administration approved TransCanada Corp's (TRP.TO) Keystone XL pipeline on Friday, cheering the oil industry and angering environmentalists even as further hurdles for the controversial project loom.
• President Donald Trump will sign an order on Tuesday aimed at making it easier for companies to produce energy in the United States, administration officials said on Sunday.
Under Trump, the U.S. Environmental Protection Agency is aiming to aggressively roll back Obama-era environmental regulations.
Trump plans to sign the executive order at the EPA to reduce "unnecessary regulatory obstacles that restrict the responsible use of domestic energy resources," a White House official said.
• Oil rose modestly on Friday in a spate of late-day activity, but fell on the week as concerns persisted over an excess of crude.
- U.S. West Texas Intermediate (WTI) crude futures CLc1 settled up 27 cents to $47.97 a barrel, but lost 0.5 percent on the week. About 390,000 WTI contracts had changed hands, lower than the average of about 520,000 over the last 200 days.
- Brent crude LCOc1 ended up 24 cents to $50.80, and ended down 1.8 percent this week.
Oil has been on the back foot for more than two weeks now, after a string of U.S. inventory reports suggested that output cuts by the Organization of the Petroleum Exporting Countries were not having the desired effect in reducing global oversupply.
• A joint committee of ministers from OPEC and non-OPEC oil producers has agreed to review whether a global pact to limit supplies should be extended by six months, it said in a statement on Sunday.
An earlier draft of the statement had said the committee "reports high level of conformity and recommends six-month extension".
But the final version said only that the committee had requested a technical group and for the OPEC Secretariat to "review the oil market conditions and revert ... in April, 2017 regarding the extension of the voluntary production adjustments".
Oil sector analysts said the lack of an immediate extension could drag on crude prices.
Reference: Reuters
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