The dollar lost some steam on Thursday after surging on optimism following the release of the GOP’s tax reform plans on Wednesday. The plan called for a lower corporate tax rate and would cut the highest individual income tax rate. Criticism, however, arose over how the plan was skewed toward the wealthy, while questions remained over how the tax cuts would be funded.
The dollar index, which tracks the greenback against a basket of rivals, stood at 93.183 by 8:04 a.m. HK/SIN after climbing as high as 93.666 overnight.
The pullback in the U.S. currency was likely due to the “reality check setting in that the road to reform will be a long and winding trek — and an extremely bumpy one at that based on the current GOP squabbling,” said Stephen Innes, APAC head of trading at OANDA, in a note.