Investing.com - The U.S. dollar moved higher on Tuesday, as expectations for an upcoming U.S. rate hike as well as a major tax reform bill lent broad support to the greenback.
USD/CAD was up 0.57% at 1.27762 by 09:30 a.m. ET (13:00 GMT).
The greenback remained supported after mostly positive U.S. data released late last week added to expectations for a rate hike by the Federal Reserve.
Separately, investors were waiting to see how Republicans would reconcile differences over their proposed tax bill that, if enacted, would be the biggest overhaul of the U.S. tax system since the 1980s.
It would also be the first major legislative achievement since Republicans took control of the White House and Congress in January, but doubts remain over the scale of borrowing needed to finance the bill and the timetable for its passage this month.
Market participants were also monitoring U.S. President Donald Trump's Asian tour. Trump arrived in South Korea on Tuesday amid concerns Washington may resort to military action against its Northern neighbour.
Meanwhile, a dip in oil prices on Tuesday also dampened demand for the commodity-related Canadian currency.
The loonie was fractionally lower against the euro, with EUR/CAD up 0.28% at 1.4789.