Currency – The dollar exchange rate against its rivals on tax reform


The dollar exchange rate against its rivals on tax reform

Investing.com – The dollar exchange rate against its counterparts on Wednesday, as optimism linked to the tax reform in the U.s. starts to weaken, traders are awaiting the finalization thereof, in a context marked by the concern policy.

Sentiment on the greenback has been weakening because of the possibility of a shutdown of the u.s. government if lawmakers fail to reach a budget deal this week. With government funding set to expire Friday.

The u.s. dollar was initially boosted after the u.s. Senate has passed a package of revision of tax in the course of the weekend in the middle of the forecast according to which the tax reductions for businesses will stimulate the american economy.

Some investors also believe that the recovery of the economy will prompt the federal Reserve to raise interest rates more quickly.

The republicans have the intention to send a final bill to the White House before Christmas, with the House and the Senate working to reconcile separate versions of the plan.

The index dollar, which measures the greenback’s strength against a basket of six major currencies, changes little 93.30 at 05:15 a. m. AND (09:15 GMT).

The EUR/USD is stable at 1.1825, while the GBP/USD is losing 0.44% at 1.3384 after that England has failed in the conclusion of an agreement with the European Union.

Elsewhere, the yen is progressing with the USD/JPY down 0.44% to 112.11 while the USD/CHF is losing 0.11% at 0.9885.

The kiwi and the aussie diverge, with the AUD/USD down 0.22% at 0.7590, and the NZD/USD up 0.31% to 0.6897.

Earlier Wednesday, the australian Bureau of statistics said that the gross domestic product increased by 0.6% in the third quarter, disappointing expectations for a growth of 0.7% and compared to a decline of 0.9% in the three months to June .

From year to year, the australian economy grew at a rate of 2.8% in the last quarter, compared to forecasts of a growth rate of 3.0%.

In the meantime, the USD/CAD is losing 0.08% at 1.2677.

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