Investing.com – The dollar traded higher against a basket of major currencies on Wednesday, as investors awaited an update from the Trump administration on a tax reform plan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose by 0.41% to 99.12 by 12:55 EDT.
In what was a quiet day for top tier economic data release, the dollar advanced on the back of comments from Treasury Secretary Steven Mnuchin, after he confirmed the administration's tax reform plan would cut the business tax rate to 15 percent.
Treasury Secretary Mnuchin’s comments came ahead of an eagerly awaited update from President Donald Trump on his tax reform plan.
Mr Trump insisted last Friday, that the tax cuts will be “bigger I believe than any tax cut ever”.
Elsewhere, the euro reversed its recent march higher against the dollar, as investors appeared to cash in on the recent euro rally, following the first round victory for pro-EU candidate Emmanuel Macron.
EUR/USD fell by 0.52% to $1.0877 while EUR/GBP lost 0.39% to 0.8478.
Meanwhile, GBP/USD dipped by 0.12% to $1.2824 but remained close to multi-month highs, ahead of the UK general election, scheduled for June 8.
Elsewhere, ‘the loonie’, USD/CAD added 0.28% to $1.3611, after hitting a one-year high in the previous session, underpinned by comments from Secretary Wilbur Ross.
Mr Ross said Monday, the United States will impose preliminary anti-subsidy duties averaging 20 percent on imports of Canadian softwood.
Elsewhere, investors continued to abandon the flight to safety trade, as demand fell for safe-haven yen.
USD/JPY traded at 111.68, up 0.53%.