Investing.com - The dollar held onto modest gains against other major counterparts on Tuesday, as the approval of a major tax reform plan by the U.S. Senate continued to support demand for the greenback.
The greenback strengthened after the U.S. Senate passed a tax overhaul package over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy.
Some investors also believe the boost to the economy will prompt the Federal Reserve to raise interest rates at a faster pace.
Republicans are aiming to send a final tax bill to the White House before Christmas, with the House and Senate working to reconcile separate versions of the plan.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.14% at 93.18 by 05:15 a.m. ET (09:15 GMT).
Separately, data showed that activity in the UK service sector declined more than expected in November.
In a widely expected move, the Reserve Bank of Australia held its benchmark interest rate at 1.50% at the conclusion of its policy meeting on Tuesday.
Also Tuesday, the Australian Bureau of Statistics said the current account surplus narrowed to A$9.1 billion in the third quarter from A$9.7 billion in the second quarter, compared to expectations for a current account deficit of A$9.2 billion.
Another report showed that Australia's retail sales increased by 0.5% in October, beating expectations for an uptick of 0.3%.
Meanwhile, USD/CAD edged down 0.11% to trade at 1.2662.
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