Investing.com - The dollar continued to hold on Friday amid optimism for a major U.S. tax reform and speculation over the next Federal Reserve chair.
The greenback was boosted after the U.S. Senate approved a budget on Thursday that paves the way for tax-cut reform.
Meanwhile reports that U.S. President Donald Trump was leaning toward less hawkish candidate Fed Governor Jerome Powell, weighed on the dollar. Trump is expected to announce his decision before November 3.
The euro continued to fall amid Spanish political uncertainly as the central government prepares to suspended Catalonia rule, with EUR/USD decreasing 0.55% to 1.1787.
The pound rebounded after German Chancellor Angela Merkel said Brexit talks were progressing. GBP/USD increased 0.28% to 1.3195.
The yen was down, with USD/JPY up 0.88% at 113.45 while the Australian and New Zealand dollars were lower. AUD/USD fell 0.77% at 0.7818 and NZD/USD decreased 0.88% to 0.6966.
The Canadian dollar fell after data showed its inflation rose less than expected last month, while retail sales declined more than anticipated. USD/CAD advanced 0.99% to trade at 1.2608.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.56% to 93.52 by 11:29 AM ET (4:29 PM GMT).