The U.S. dollar moved lower against other major currencies on Friday, but losses were expected to remain limited after an important U.S. tax reform bill was passed by the House of Representatives.
The U.S. House of Representatives on Thursday approved a broad package of tax cuts, which will now be debated by the Senate.
Investors were still cautious however, as the Republican majority is smaller in the Senate and no decisive action is expected until after next week’s Thanksgiving holiday.
The greenback also remained under pressure the U.S. Department of Labor reported on Thursday that initial jobless claims increased unexpectedly to 249,000 last week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.30% at 93.56 by 02:15 a.m. ET (06:15 GMT), off Wednesday’s three-week low of 93.31.
EUR/USD gained 0.30% to 1.1802, while GBP/USD rose 0.32% to trade at 1.3236.
Elsewhere, USD/JPY declined 0.46% to trade at 112.54, while USD/CHF slipped 0.17% to 0.9923.
The Canadian dollar was higher, with USD/CAD down 0.13% to 1.2741 as markets were the release of Canadian inflation data due later in the day.
