Article Highlights

  • Euro buoyant after solid German data, ebb in Catalonia concerns
  • Dollar wobbles, Trump's tax overhaul plan seen facing obstacles
  • Dollar index pulls further away from 10-week high set last week
Partner Center Find a Broker

The dollar wobbled against its peers on Wednesday, edging further away from a 10-week high scaled recently amid speculation that President Donald Trump’s tax overhaul plan would stall, with a buoyant euro adding further pressure.

The euro was 0.15 percent higher at $1.1824 after touching $1.1828, its highest since Sept. 29.

The common currency slumped to a seven-week low of $1.1669 on Friday as stronger-than-expected U.S. wages data lifted the greenback.

But the euro has rebounded since, supported by upbeat euro zone economic indicators and a slight ebb in Catalonia concerns.

Following Monday’s robust industrial output numbers, German data on Tuesday showed exports surged in August.

Catalan leader Carles Puigdemont on Tuesday proclaimed the region’s independence from Spain but said the effects would be postponed to allow for talks, pushing up the euro.

The Catalanonia issue is likely to fade away as a market theme and speculators will find it harder to sell the euro in turn,” said Yukio Izhizuki, senior currency strategist at Daiwa Securities.

The dollar is also looking heavy against the euro due to uncertainty over U.S. tax issues. Squabbles surrounding Trump’s efforts come as no surprise, but it is still not helping the dollar.

President Trump’s public feud with Tennessee Senator Bob Corker has raised concern that his push for a tax-code overhaul could be harmed.

The dollar was down 0.15 percent at 112.300 yen after slipping to as low as 111.990 overnight. The greenback had risen to a three-month high of 113.440 on Friday but had pulled back after a flare up in North Korea worries.

The dollar index against a basket of six major currencies extended overnight losses and was 0.1 percent lower at 93.187 , putting further distance between the 10-week peak of 94.267 scaled on Friday.

Against a broadly weaker U.S. currency the Australian dollar added 0.3 percent to $0.7802.

The New Zealand dollar was 0.4 percent higher at $0.7097 , crawling away from a four-month low of $0.7052 struck on Monday after a final vote count in the country’s tight general election failed to identify a clear winner.