The dollar has being nursing losses today after skidding to a 10-month low against a currency basket as Republican legislators' failure to pass a stalled healthcare bill raised fears for the rest of President Donald's Trump reform agenda.

Republican efforts to overhaul or repeal Obamacare collapsed in the US Senate yesterday, rattling financial markets and casting doubt on the chances of getting Mr Trump's economic plans, such as tax reform and stimulus, through a divided Congress.

The dollar index, which tracks the greenback against a basket of six major rivals, edged up 0.2% to 94.780 after falling as low as 94.476 last night, its lowest level since September 2016.

The euro inched 0.2% lower to $1.1534, after rising as high as $1.1583, its highest since May 2016.

The European Central Bank will hold a policy meeting tomorrow, with participants seen likely to adjust their language as they edge the ECB towards normalising policy.

Such adjustments may include dropping a reference to the bank's readiness to increase the size or duration of its asset-purchase programme before announcing in the autumn how and when it will start winding down its bond-buying.

The ECB, keen to retain flexibility in case the outlook sours, is set to keep its asset purchases open-ended rather than setting a potentially distant date on which bond-buying will stop, three sources familiar with the discussion said.

ECB President Mario Draghi roiled markets last month when he opened the door to potential adjustments to the quantitative easing programme.

Expectations that the US Federal Reserve will be more cautious about raising interest rates also weighed on the dollar.