The U.S. dollar was dragged away from a ten-week high by its major opposing currencies on early Wednesday after expectations that the tax reform plans of Trump would be disrupted. Euro’s rebound also weighed on the greenback.
The public feud of U.S. President Donald Trump versus Tennessee Senator Bob Corker has heightened concerns regarding the enactment of his promised tax reforms being stalled.
The index which tracks the value of the U.S. currency against its major peers, the dollar index, extended its declines overnight by 0.1 percent at 93.267. This made the index further away from a 10-week high it notched last Friday.
Looking at the dollar’s performance, it dropped as low as 0.15 versus Japanese counterpart at 112.300 yen following a decline overnight at 111.990. However, the currency rose to an almost three-month high of 113.440 last Friday but finished lower after the tension in North Korea. The Aussie dollar was also ahead of the greenback on the day at $0.7802.
The strength of the euro has also something to the with the greenbacks downturn. The common currency jumped more than 0.15 percent to $1.1824 after reaching its best level since September 29 at $1.1828. However, it fell to a seven-week low against the greenback last Friday at $1.1669 after unexpectedly stronger US. wages data somehow supported the dollar.
The easing concerns regarding the tension surrounding Catalonia and positive figures from euro zone’s economy have already contributed to the euro’s bounce.