© Reuters. The dollar maintains its gains against its rivals
Investing.com – The dollar to retain its modest gains against its counterparts in the major Tuesday, while the approval of a major tax reform plan by the u.s. Senate continued to support demand for the greenback.
The greenback strengthened after the u.s. Senate has passed a package of revision of tax in the course of the weekend, while it is expected that the tax reductions for businesses stimulate the economy of the United States.
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, advance of 0.14% to 93.18 at 05:15 a. m. AND (09:15 GMT).
The EUR/USD gives up 0.12% to 1.1851 while the GBP/USD losing 0.42% to 1.3424 after that England has failed in the conclusion of an agreement with the European Union.
In a report, Markit, a research specialist said that its PMI index for services fell to 53.8 last month from 55.6 in October.
Elsewhere, the yen slips with USD/JPY up 0.15% to 112.57 while the USD/CHF is gaining 0.14% to 0.9864.
The kiwi and the aussie are progressing, with the AUD/USD up 0.57% to 0.7641 and NZD/USD rising 0.38% to 0.6888.
The Reserve Bank of Australia maintained its interest rate at 1.50% at the conclusion of its policy meeting on Tuesday.
A report showed that retail sales in Australia rose 0.5% in October, against forecasts of 0.3%.
In the meantime, the USD/CAD gives up 0.11% to 1.2662.