The dollar plunged to a four-month low and US equities came under heavy selling pressure as investors lost confidence in Donald Trump’s ability to deliver on his ambitious economic agenda, after Friday’s healthcare reform defeat.

In a stunning setback, the US President failed to rally enough support from his own Republican party to repeal and replace Obamacare, which was billed as his first major test since taking office in January.

The dollar index, which hit a 14-year high in early January, sank below 99.0 for the first time since November 11, two days after Trump’s presidential victory. The dollar weakness lifted the pound across $1.26 against the US dollar for the first time since February 2, while the euro surged to a four-month high of $1.09.