Investing.com – The dollar rose on Friday against a basket of major currencies amid easing uncertainty surrounding the progress of tax reform after news reports suggested that Republicans secured enough votes for the bill passage.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.22% to 93.84.
CNBC said, citing two sources, Marco Rubio will support the final Republican tax bill after the GOP made changes to win his vote.
Rubio had said earlier this week, he won't approve the GOP tax plan unless it raises the refundable portion of the child tax credit currently at $1,100. Tax-reform is widely viewed as inflationary, providing the economy with a fiscal lift and considered a dollar positive.
Rising optimism surrounding the progress of tax reform offset earlier data showing industrial production and manufacturing activity fell short of expectations.
The Empire State manufacturing index fell to 18.0 in December from 19.4 the month prior, in-line with expectations.
Industrial production—a measure of output at factories, mines and utilities—rose a seasonally adjusted 0.2% in November from the prior month, the Federal Reserve said Friday. This was slightly below the 0.3% rise forecast by economists.
Also boosting the greenback was a 0.84% slump in the pound to $1.3220 as investors brace for the next round of Brexit negotiations, which European Commission president Jean-Claude Juncker warned be "harder".
EUR/USD fell 0.13% to $1.1763, while EUR/GBP rose 0.71% to £0.8832.
USD/JPY rose 0.27% to Y112.69, while USD/CAD fell 0.47% to $1.2850 as latter pair continued to shrug off a rebound in crude prices.