Trump’s Upcoming Tax Proposal Pushes Dollar up in the Market
By Anatol Thomas
On Monday, in the Asian trading market, the dollar gained significantly, slightly recovering from the losses of the last week. The dollar was experiencing two-week low, when the market closed on Friday. It pulled away slightly from the low values and increased against the Japanese Yen. The market is hopeful, as Donald Trump will be addressing the Congress on Tuesday with statistics on the tax reforms.
The investors continue with bullish bets on the American dollar, but they don’t want to take hasty decisions. The market is hopefully waiting for some positive news in the tax reforms being proposed by President Donald Trump, after which the dollar is expected to climb up once again. However, industry experts warn that the new information may not be sufficient to clarify on the tax proposal. If the president doesn’t address the economic issues related to tax reforms, the market will again undergo a major change, which will not be favorable for the dollar.
Despite the numerous promises, the Trump administration has failed to bring about reforms politically. USD trade won’t be as viable, if the Congress address doesn’t provide any information on tax reforms. In another news, the White House is prepared to send a budget proposal on Monday, increasing the financing for the Pentagon. The increase in the budget will be balanced, by cuts in the budget for US State Department and Environmental Protection Agency. The non-defense departments have to face the brunt, as there are no fresh efforts put in to bring new revenue now.
On Friday, the US dollar closed at 111.925 yen, reaching well below the 112 mark.
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