The dollar maintained its strength as dealers contemplated Trump’s tax cuts passing through Congress and remarks from top Federal Reserve officials indicating another interest rate hike before the end of the year, with the possibility of more in 2018.
“Inter-party (Republican) squabbling has subsided as the US House has taken essential steps setting the stage to roll out a determined tax-overhaul bill which should pass without Democratic backing,” said Stephen Innes, head of Asia-Pacific trading at OANDA.
The greenback was also given some help against the euro by Spain’s ongoing crisis with Catalonia threatening to break away, which has seen the single currency sink to around $1.17 — having topped $1.20 just two weeks ago.
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