Dollar Rises On U.S. Tax Reform Hopes
December 07 2017 - 4:39AM
RTTF2
The U.S. dollar climbed against its major counterparts in the
European session on Thursday, amid optimism over progress by
Congress on tax legislation and easing fears over a government
shutdown.
The House of Representatives advanced a bill to approve
temporary spending late Wednesday in order to avert a government
shutdown on Friday.
The chamber is set to vote on a two-week extension for spending
measure later in the day, followed by a Senate vote on Friday.
The Senate voted 51-47 to form a Conference Committee on
Wednesday to reconcile differences with the House on tax reform
bill. If both the chambers agree on a joint tax bill, it should be
passed by them to get it passed by Trump.
Data from the Labor Department showed that first-time claims for
U.S. unemployment benefits dropped modestly in the week ended
December 2.
The report said initial jobless claims edged down to 236,000, a
decrease of 2,000 from the previous week's unrevised level of
238,000. The drop surprised economists, who had expected jobless
claims to inch up to 240,000.
The currency has been trading in a positive territory in the
Asian session.
The greenback rose to a new 2-week high of 1.1776 against the
euro and held steady thereafter. The pair finished Wednesday's
trading at 1.1796.
The greenback advanced to a 2-day high of 112.80 against the yen
and more than a 2-week high of 0.9941 against the franc, from its
early lows of 112.22 and 0.9874, respectively. If the greenback
rises further, 114.00 and 1.02 are likely seen as its next
resistance levels against the yen and the franc, respectively.
The greenback climbed to a 9-day high of 1.3320 against the
pound, from an early low of 1.3421, and held steady thereafter. The
pair was valued at 1.3390 when it closed deals on Wednesday.
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