Forex – Dollar Slips Lower With U.S. Tax Bill Still in Focus

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© Reuters.  Dollar loses some ground against other majors in cautious trade© Reuters. Dollar loses some ground against other majors in cautious trade

Investing.com – The dollar slipped lower against other major currencies on Thursday, as uncertainty over the fate of a major U.S. tax reform bill continued to weigh and as markets continued to follow U.S. President Donald Trump’s diplomatic tour of Asia.

Investors remained cautious as a U.S. Senate tax-cut bill, which differs from one in the House of Representatives, was set to be unveiled later Thursday.

The Washington Post reported on Tuesday that Senate Republican leaders were thinking of postponing the implementation of major corporate tax cuts to comply with Senate rules.

Traders are concerned over any potential delays in the implementation of the tax cuts or the possibility that proposed reforms end up being less drastic than hoped for.

Market participants were also monitoring President Trump’s trip throughout Asia. In a meeting with Chinese counterpart Xi Jinping on Wednesday, Trump said he aims to address what he considers to be unfair practices from China that have led to a mismatch of benefits from U.S.-China trade.

The president went on to say that the current relationship between the two countries is a “very one-sided and unfair one.”

The remarks came a day after Donald Trump addressed tensions with North Korea, saying that Pyongyang “has interpreted America’s past restraint as weakness” and that “this would be a fatal miscalculation.”

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.15% at 94.63 by 02:15 a.m. ET (06:15 GMT).

EUR/USD edged up 0.16% to 1.1615, while GBP/USD rose 0.24% to trade at 1.3145.

Elsewhere, USD/JPY slipped 0.23% to 113.64, while USD/CHF fell 0.22% to 0.9978.

The Australian and New Zealand dollars were steady, with AUD/USD at 0.7685 and with NZD/USD at 0.6963.

Earlier Thursday, the Reserve Bank of Australia left its benchmark interest rate unchanged at 1.75% at the conclusion of its monthly policy meeting, in a widely expected move.

The central bank also projected a possible rate hike for the second quarter of 2019, three months earlier than previously expected.

Meanwhile, USD/CAD edged down 0.08% to trade at 1.2717.

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