Forex – Dollar Steadies, Still In Sight of 2-Month Lows
Investing.com – The dollar eased against a basket of the other major currencies on Tuesday, but remained in sight of two-month lows as investors remained cautious ahead of a possible Senate vote on a U.S. tax plan later in the week.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 92.86 by 03:21 AM ET (08:21 AM GMT), having gone as low as 92.43 on Monday, the lowest since September 26.
Concerns over possible delays in the implementation of a major tax overhaul, including tax cuts have pressured the dollar lower in recent weeks.
Senate Republicans are hoping to hold a vote on their version of the tax bill as soon as Thursday but it faces from Republican lawmakers who want changes to the legislation.
Investors were also looking ahead to a confirmation hearing later Tuesday for Federal Reserve chair nominee for clues on the possible future direction of Fed policy.
The Fed said in September that it expects to raise rates once more this year and three more times in 2018, but the minutes of the bank’s October meeting pointed to increasing concerns over persistently low levels of inflation.
The dollar was little changed against the euro, with at 1.1905, holding below the two-month high of 1.1960 set on Monday.
Demand for the euro continued to be underpinned after data late last week pointing to robust growth in the euro zone helped overcome investors’ concerns over political uncertainty in Germany.
The dollar was steady against the yen, with at 111.24, hovering above Monday’s two-month trough of 110.83.
Sterling was a touch higher, with rising 0.12% to 1.3331 after scaling a two-month peak of 1.3382 on Monday.
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