By Aditya Soni
Nov 13 (Reuters) – Most Asian currencies were subdued on Monday as uncertainty about U.S. President Donald Trump’s tax reform plans checked investor enthusiasm.
The head of the House of Representatives’ tax-writing committee said on Sunday he would not accept elimination of a federal deduction for state and local taxes, opposing a proposal from Senate Republicans that would hike taxes for some middle-class Americans. “Digesting tax reform banter is an unsavoury business as even the ambient noise is triggering unusual moves across asset classes which has traders scurrying looking for answers,” Stephen Innes, head of trading in Asia-Pacific for Oanda in Singapore, wrote in a note.
“But when usual correlations break down, it creates conflicting messages producing a scrambled picture and price discovery becomes virtually impossible,” he said.