Dollar was surpassed by major peers as Trump was close on deciding the next Fed chair

US dollar index

The U.S. dollar was depreciated by a basket of currencies on early Tuesday. As the market shifted their attention to the next U.S. Federal Reserve leader, the greenback got pulled out from its high touched recently.

Global investors are also keeping a closer look on the progress of U.S. tax reforms. The approval of the Senate on a budget resolution last Friday has heightened expectations that the promised tax reform plans of U.S. President Donald Trump will push through before this year ends.

He told the media on the previous day that he is so close to deciding his chosen U.S. Federal Reserve chair. Trump already interviewed five people for the position. One of the candidates includes the current chair Janet Yellen, his chief economic advisor Gary Cohn, Stanford University economist John Taylor, and two Fed governor Kevin Warsh and Jerome Powell. The term of Yellen will expire this February 2018.

State Street Bank’s Tokyo branch manager Bart Wakabayashi said the currency market is fully concerned with the outcome of this, that’s why they keep speculating about this and taking fresh FX positions. He added that the rumors have been urging traders to sell or buy.

The index which measures the value of the greenback versus its major peers, the dollar index, fell as low as 0.2 percent at 93.741. It was dragged away from its highest level since October 6 at 94.017. The currency was also lower against its Japanese counterpart by 0.1 percent at 113.35 yen after the Japanese election last Sunday.

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