The U.S. dollar closed the week on the red zone against its major opposing currencies last Friday. This is after the decline of U.S. Treasury yields when global traders are still uncertain on whether the efforts of Republicans to enact tax reforms will push through before this year ends.
Treasury yields were down on the day following a depressing finish in U.S. stocks due to the on-going doubts about the fate of President Trump’s promised tax plans. Republican from the U.S. Congress took a significant step last Thursday towards a tax code overhaul since the 1980’s in the United States.
The House of Representatives approves a huge package of tax reductions along with a panel of Senators advancing their very own version of the legislation sought by Donald Trump and lawmakers. The verdict of the House moved the debate on tax reforms to the Senate, which is where a tax-writing panel finished the debate and signed the reform last Thursday. The full action of the Senate is expected this week on Thanksgiving.
The index which measures the value of the U.S. currency against its major peers, the dollar index, edged down as low as 0.28 percent to 93.67. It fell more than 0.8 percent for the whole week. Meanwhile, the dollar was lower versus its Japanese counterpart by 0.87 percent and the euro rose by 0.20 percent at $1.1793.
Brown Brother Harriman’s head of emerging markets strategy Win Thin said the greenback was sluggish across the board against the yen and majority of the emerging market currencies.