The dollar rose to its highest level in more than three months Monday, buoyed by expectations of tax reform in the U.S.
The Wall Street Journal Dollar Index, which gauges the U.S. currency against a basket of 16 others, rose as high as 87.23, its highest level since July 17. The measure was recently up 0.1% at 87.10.
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President Donald Trump said Sunday that he was optimistic Congress would pass a tax plan he could sign by year's end. The comments came days after the Senate voted for a budget blueprint that cleared a critical hurdle allowing Republicans to push ahead with the first major revision of the tax code since the 1980s. Most investors believe that a tax overhaul would give the dollar at least a temporary boost.
"The dollar has some modest wind in its sales for the moment and we still see this persisting for the rest of the year," said Steven Barrow, head of G-10 foreign-exchange strategy at Standard Bank, in a note to clients.
Investors will also be keeping an eye out for the U.S. Commerce Department's advance estimate of third-quarter gross domestic product, due out Friday.
The euro was recently down 0.3% at $1.17510. The dollar was down 0.1% at Yen113.40.
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(END) Dow Jones Newswires
October 23, 2017 17:12 ET (21:12 GMT)