Forex – Dollar slips deeper amidst new problems with US tax reform

The dollar’s price has slipped against the other major currencies on Friday, amid fresh concerns about plans for tax reform in the United States. In addition, the currency continues to be weighed down by the Federal Reserve’s latest monetary policy statement.

The US currency came under pressure after two Republican senators proposed amendments to the draft tax reform bill on Thursday.

The law needs a simple majority to get through the Senate, where Republicans hold only 52 out of 100 seats.

On Wednesday, the Fed raised its key policy rate by 0.25% to 1.50% on Wednesday to wind up its monetary policy session.

However, the central bank did not alter its interest rate projections for next year, which foresee three more rate hikes for both 2018 and 2019, which fell short of expectations of four rate hikes in the coming year.

The US dollar index, which reflects the US currency’s exchange rate against a weighted basket of six other key currencies, was 0.09% lower at 93.62 at 08:02 CET.

The euro and the pound hardly moved against the dollar, with the EUR / USD heading for 1.1884 and the GBP / USD heading for 1.3442.

The single currency remains vulnerable to setbacks after Thursday’s European Central Bank left its monetary policy unchanged and revised its forecasts for growth and inflation higher, adding that inflation remains subdued.

The Bank of England also left interest rates low on Thursday, saying there had been “progress” in the Brexit negotiations between London and Brussels.

The USD / JPY fell 0.12 to 112.25, while the USD / CHF was stable at 0.9885.

On Thursday morning there were numbers from Japan, which according to the business climate improved in the three months to December for the fifth consecutive quarter.

The Australian and New Zealand dollars made gains. The AUD / USD has rallied 0.13% to 0.7677 and the NZD / USD has gained 0.46% to 0.7017.