The U.S. dollar closed slightly lower against its peers on Tuesday. It slipped from an eight-month high versus its Japanese counterpart. This was due to the decline in Treasury yields after doubts regarding the pace of Trump’s promised tax reform.
Ongoing uncertainties on whether Republicans would be able to enact their tax reform plan has pushed down yields because it dimmed hopes for a better U.S. economic health. The downtrend of yields has pressured the dollar index as it finished below the flat line at 94.726, away from the ten-day peak of 95.077 last Monday.
Against the Japanese yen, the dollar was nearly unmoved at 113.780 yen. Meanwhile, the euro remained stable at $1.1612.
Oil futures dropped on Tuesday’s opening session on account of a decline in U.S. rig count and the steps the Saudi Arabia’s crown prince took to secure his power.
Mohammed bin Salman, Saudi Arabia’s crown prince, cemented his power base by arresting some of the nation’s prominent royals, such as the head of the Natural Guard Prince Miteb bin Abdullah and billionaire Alwaleed bin Talal.
London Brent crude futures rose 3.5 percent last session but is expected to decline today. U.S. West Texas Intermediate crude prices fell by 0.2 percent, or 13 cents, closing at $57.22 per barrel.