The U.S. dollar rises on Thursday after three days of losses following the House of Representatives’ narrow approval of President Donald Trump’s bill for significant tax and spending cuts.
The euro falls amid weak economic data from the eurozone, while Bitcoin reaches a new all-time high as investors seek alternatives to U.S. assets.
The tax bill’s passage has brought a mix of relief and caution in the markets, as it is expected to increase the national debt substantially. The Congressional Budget Office projects the bill will add $3.8 trillion to the current $36.2 trillion U.S. debt over the next decade. The Senate is set to begin weeks of debate on the bill.
The dollar edges up 0.1% to 143.75 yen in late morning trading, rebounding from an earlier low of 142.80 yen, its weakest level since early May. A strong labor market report showing a drop in weekly jobless claims adds support to the dollar. Initial claims for unemployment benefits fall by 2,000 to 227,000 for the week ended May 17, below economists’ expectations.
Meanwhile, a weak 20-year bond auction on Wednesday weighs on the dollar and Wall Street, adding to concerns after Moody’s downgrade of the U.S. credit rating last week.
The euro falls 0.3% against the dollar to $1.1293 after three consecutive days of gains. Eurozone business activity contracts unexpectedly in May, according to a preliminary composite Purchasing Managers’ Index, raising concerns about the region’s economic outlook amid ongoing trade tensions.
Sterling rises 0.1% to $1.3434, holding near a three-year high reached earlier this week, supported by strong inflation data that reduces expectations for Bank of England rate cuts.
The dollar index, which tracks the U.S. currency against six major peers, rises 0.2% to 99.844, above its recent two-week low.
Bitcoin climbs to a fresh peak of $111,862.98, up 3.3% from the previous close, as investor demand for cryptocurrency and related ETFs accelerates, signaling a shift in sentiment toward digital assets.
