Investing.com - The dollar was holding steady against a basket of the other major currencies on Thursday following tepid U.S. data on consumer spending as investors remained focused on the progress of a U.S. tax reform bill.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was at 93.24 by 09:07 AM ET (14:07 GMT) and was on track for a monthly loss.
The dollar showed little reaction after data showing that U.S. consumer spending slowed in October, while a measure of underlying inflation rose for a second straight month.
The Commerce Department said consumer spending rose 0.3% last month after jumping 0.9% in September.
The Federal Reserve's preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 0.2% in October after a similar gain in September.
At the same time, another report showed that initial jobless claims fell for a second straight week as labor market conditions continued to tighten.
Investors remained focused on a U.S. tax bill as the measure moved toward a U.S. Senate floor vote later this week, amid ongoing concerns over how much it will expand the federal deficit.
Momentum towards a deal has been building this week after Senate Republicans voted to move the proposed bill to a debate on the floor. A final vote in the Senate could come as early as Thursday night.
The dollar was higher against the yen, with USD/JPY up 0.27% to 112.23 away from Monday's ten-week low of 110.85.
The euro was slightly higher against the dollar, with EUR/USD at 1.1863, holding below Monday’s two-month high of 1.1961.
Earlier Thursday, data showed that euro zone inflation rose by a smaller than forecast 1.5% in November, highlighting weak price growth in the region and supporting the European Central Bank's plan to remove stimulus only gradually.
At the same time, another report showed that the unemployment rate in the euro zone dropped to 8.8% in November, the lowest since January 2009.
Sterling was at two-month highs, with GBP/USD up 0.39% to 1.3459 amid hopes that a deal on Brexit would be reached.
A report earlier on Thursday that Britain is close to a deal over the Northern Ireland border add to optimism after reports earlier in the week that Britain has reached a deal with the European Union over the size of its Brexit divorce bill.
The British government, however, said that nothing had been finalized in Brexit talks.