Investing.com - The Canadian dollar pushed higher against its broadly weaker U.S. counterpart on Tuesday as worries over a planned Republican tax overhaul pressured the greenback lower.
USD/CAD touched a low of 1.2701 and was at 1.2719 by 09:38 AM ET (02:38 PM GMT), off 0.12% for the day.
The U.S. dollar remained on the back foot as investors waited any signs of compromise on tax policy after Senate Republicans unveiled a plan last week that would cut corporate taxes a year later than a rival House of Representatives' bill.
The dollar shrugged off data showing that U.S. producer prices rose more than expected in October, surprising economists who had expected a slight decline.
The Commerce Department reported that the producer price index increased 0.4% last month and by 2.8% from a year earlier. Economists had forecast an increase of 0.1% last month and a rise of 2.4% from a year ago.
The loonie’s gains were held in check as investors turned their attention to the resumption of renegotiations on the North American Free Trade Agreement.
The fifth round of talks on NAFTA is due to be held between Nov. 17 and 21 in Mexico City.
Canada sends about 75% of its exports to the U.S. and its economy could be hurt badly if the trade pact collapses.