The dollar hovered near a four-month low against the Japanese yen on Thursday ahead of a vote on Republican healthcare plans seen as a litmus test of US President Donald Trump's ability to legislate in Congress and deliver on tax and spending promises. Trump was set to make a final push in the House of Representatives to secure the votes to begin dismantling Obamacare, with signs that enough Republicans might defect to jeopardize one of his top legislative priorities.
"Today, more than anything, the US House vote is what people are looking at," said Alvise Marino, FX strategist at Credit Suisse in New York.
"If the (proposal) does not pass," he said, "that suggests the government's ability to actually introduce meaningful changes and meaningful policies is probably going to be considered lower."
The dollar was roughly steady at 111 yen, after dipping to a low of 110.64 yen earlier in the session.
The greenback soared to a 14-year peak after Trump's election last year on expectations of tax changes that would lead to billions repatriated to the United States and allow the White House to spend more, boosting growth, inflation and interest rates.
Sterling jumped to a nearly one-month high against the dollar after UK retail sales data came in much higher than expected, soothing worries about weakening consumer sentiment in Britain as it prepares to leave the European Union.
Australia's dollar, fell 0.66 percent to a 1-week low against the greenback on a slump in prices for its iron ore exports and nervousness in China's money market.
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