Dollar Mixed in APAC

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.


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Stephen Innes

Stephen Innes

Head of Trading APAC at OANDA
Stephen has over 25 years of experience in the financial markets and currently based in Singapore as the Head of Trading Asia Pacific with OANDA. Stephen's market views focus on the movement of G-10 and ASEAN Currencies. His views appear in Bloomberg, CNBC.Reuters, New York Times WSJ and the Economist. His media appearances include Bloomberg TV & Radio, BBC International, Sky TV, Channel News Asia, ASTRO AWANI and BFM Malaysia. Stephen has an extensive trading experience in Spot and Forward FX, Currency and Interest Rate Futures, Money Market Derivatives and Precious Metals. Before joining OANDA, he worked with organisations like Nat West, Chemical Bank, Garvin Guy Butler, and Sumitomo Mitsui Banking Corporation. Stephen was born in Glasgow, Scotland, and holds a Degree in Economics from the University of Western Ontario.
Stephen Innes