Market News

By Amanda Cooper and Gertrude Chavez-Dreyfuss

Summary

• Republican hardliners say bill not cutting spending enough
• Bessent to talk FX with Japan counterpart on G7 sidelines
• 'Sell America' investment theme continues to weigh on dollar

LONDON/NEW YORK, May 21 (Reuters) - The U.S. dollar fell for a third day against a range of currencies on Wednesday, as investors worried about the Trump administration's tax cut and spending bill, with Republicans still divided over the details of the legislation.

U.S. President Donald Trump met with House Republicans on Tuesday and failed to convince his party's holdouts to back his sweeping tax bill. Republican hardliners continue to argue the bill does not sufficiently cut spending, according to House Speaker Mike Johnson.

Amid the bill impasse, the euro rose 0.5% against the dollar to $1.1339, after earlier climbing to a two-week high.

"There's a general reallocation away from U.S. safe-haven assets, ex-equities, partly due to the budget bill," said Eugene Epstein, head of trading and structured products, North America, at Moneycorp in New Jersey. "Even before the bill, we already had an acceleratingly poor debt to GDP ratio. Our spending has outpaced growth."