US dollar erases one-month as Trump’s tax reform received mixed reactions

Dollar stuck

The US dollar retreated from its one-month high after slumping on Thursday session as the proposed tax reformed of US President Donald J. Trump drew mixed reactions from investors.

The controversial President revealed that his tax reform will slash business taxes from 35% down to just 20%, something that the private sector lauded. But some experts raised their eyebrows on the proposal as it will increase child tax credit and will double standard deductions.

With these different views on the tax reform, the US dollar failed to sustain its rally that brought the currency to its best finish in a month as the US dollar index gave up 0.3% and last traded at 93.22 against a half dozen major counterparts.

The WSJ US dollar index, which tracks the performance of greenback against 16 rivals, fell on the same percentage and closed at 86.29.

The greenback had thrilling performance on Wednesday session as it climbed to its highest settlement in one month but the recent record was short-lived, following a steep decline yesterday.

The euro stood taller against the US dollar as it rose from 1.1745 per greenback to 1.11786 while the British pound jumped from 1.33 to 1.34.

The US dollar outperformed the Swiss franc as it settled at 0.9723, its highest finish since June, from 0.9722 in the previous session.

Meanwhile, its Canadian and Australian counterparts were both little changed as they closed at 1.242 and 0.78 respectively.

 

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