Dollar struggles on concerns of U.S. tax reform's limited impact
* House-Senate Republicans put finishing touches on tax bill
* Dollar awaits passage of tax bill for more direction
* Bitcoin hits fresh record high over weekend
(Adds comment, updates prices)
By Gertrude Chavez-Dreyfuss
NEW YORK, Dec 18 (Reuters) - The dollar fell against a
basket of major currencies on Monday, as concerns grew over
whether a proposed U.S. tax overhaul program would have a major
impact on economic growth, after the bill moved another step
closer to passage over the weekend.
The U.S. currency had edged higher after Republicans on the
House-Senate negotiating committee on Friday put the finishing
touches on a sweeping tax overhaul that involves large cuts in
levies on corporations.
But it slid on Monday on uncertainty that the bill would
indeed be pushed through, and with some doubts also creeping in
over the pro-growth effect the tax reforms would have.
"Even a passage of the bill by the year's end could have a
limited impact on the dollar as investors are increasingly
skeptical of the sustained positive impact the rushed bill will
have on the economy," said Omer Esiner, chief market analyst at
Commonwealth FX in Washington.
Year-end demand for dollars had helped push the greenback
higher against the euro in recent sessions, said Alvin Tan, a
strategist at Societe Generale in London, but that slowed on
Despite the dollar's latest dip, some analysts believe there
is further room for it to go higher.
Economic forecasters expect lower corporate taxes to raise
U.S. growth by roughly 0.5 percent over the next year,
potentially lifting the pace of interest rate increases from the
two priced in by the market to closer to the three consistently
estimated by Federal Reserve policymakers, said Karl Schamotta,
director of global product and market strategy at Cambridge
Global Payments in Washington.
Against a basket of major currencies, the dollar fell 0.2
percent to 93.702. The euro benefited from the dollar's
weakness, gaining 0.3 percent to $1.1781.
Top Republicans are confident the U.S. Congress will pass
the tax bill this week, with a Senate vote as early as Tuesday
and President Donald Trump aiming to sign the bill by week's
The dollar was 0.1 percent lower against the yen at 112.54
yen following Friday's rise of 0.2 percent.
The greenback also failed to get support from a rise in U.S.
Treasury yields on Monday. The benchmark 10-year yield has been
confined to a 2.34 percent to 2.42 percent range over the past
Bitcoin was down 1.1 percent at $18,755 on the
Bitstamp exchange. It hit a record high of $19,666 on Sunday,
ahead of the launch of bitcoin futures from CME Group Inc
Currency bid prices at 3:00PM (2000 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid
Euro/Dollar EUR= $1.1783 $1.1752 +0.26% +0.00% +1.1834 +1.1739
Dollar/Yen JPY= 112.5400 112.5700 -0.03% +0.00% +112.8300 +112.3200
Euro/Yen EURJPY= 132.63 132.32 +0.23% +0.00% +133.0000 +132.2200
Dollar/Swiss CHF= 0.9858 0.9903 -0.45% +0.00% +0.9917 +0.9840
Sterling/Dollar GBP= 1.3381 1.3319 +0.47% +0.00% +1.3418 +1.3310
Dollar/Canadian CAD= 1.2868 1.2860 +0.06% +0.00% +1.2880 +1.2844
Australian/Doll AUD= 0.7665 0.7644 +0.27% +0.00% +0.7677 +0.7641
Euro/Swiss EURCHF= 1.1617 1.1640 -0.20% +0.00% +1.1668 +1.1614
Euro/Sterling EURGBP= 0.8804 0.8818 -0.16% +0.00% +0.8840 +0.8793
NZ NZD= 0.6994 0.6989 +0.07% +0.00% +0.7028 +0.6993
Dollar/Norway NOK= 8.3514 8.3785 -0.32% +0.00% +8.3952 +8.3156
Euro/Norway EURNOK= 9.8419 9.8494 -0.08% +0.00% +9.8805 +9.8290
Dollar/Sweden SEK= 8.4241 8.5046 -0.70% +0.00% +8.5172 +8.4094
Euro/Sweden EURSEK= 9.9264 9.9964 -0.70% +0.00% +10.0020 +9.9192
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by
Jemima Kelly and Tommy Wilkes in London; Editing by Meredith
First Published: 2017-12-18 03:04:57
Updated 2017-12-18 22:11:32
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