• The dollar slipped to a four-day low against the euro on Thursday, hurt by selling pressure due to month-end adjustments, but rallied against the Japanese yen as U.S. Treasury yields rose on optimism about U.S. tax overhaul efforts.
The euro was 0.42 percent higher against the greenback to $1.1897, after climbing as high as $1.1931.
Against the Japanese yen, the dollar was 0.6 percent higher at 112.59 yen. Eric Viloria, currency strategist at Wells Fargo Securities in New York, attributed the greenback’s strength to buoyant U.S. Treasury yields.
The dollar index, which measures the greenback against six rival currencies, was down 0.11 percent at 93.06.
• U.S. Treasury yields rose sharply on news that Senator John McCain had endorsed the U.S. Senate tax bill, potentially easing challenges to its eventual passage in Congress.
The 10-year Treasury yield was up at 2.415 percent, from 2.376 percent late on Wednesday. It hit a five-week high of 2.437 percent earlier in the session.
U.S. two-year note yields hit a nine-year high of 1.798 percent, from 1.762 percent on Wednesday. Two-year notes are the maturity most sensitive to rate hike expectations.
• Data on Thursday reaffirmed expectations for another Federal Reserve interest rate hike in December.
The number of Americans filing for unemployment benefits fell for a second straight week as labour market conditions tightened further.
U.S. consumer spending slowed in October, however, as the hurricane-related boost to vehicle purchases faded.
Underlying price pressures pushed higher for a second straight month, suggesting a recent disinflationary trend has run its course and bolstering expectations that the Fed will raise rates next month.
• Republican Senator John McCain’s decision to back the tax bill provided a new jolt of momentum for the legislation. McCain had helped defeat Republicans’ efforts to repeal Obamacare, and a “yes” vote by him on the tax measure was considered crucial. He said the tax bill would boost the economy, although it is “far from perfect.”
The Republican tax bill would generate a net $407 billion in new revenue from economic growth, reducing the amount that the legislation would add to the federal deficit, the nonpartisan Joint Committee on Taxation said on Thursday.
• A Republican tax overhaul stalled on a procedural issue in the U.S. Senate on Thursday, forcing lawmakers to weigh new options to an amendment sought by a leading fiscal hawk to address the bill’s projected large expansion of the federal deficit.
Senator Bob Corker wanted to add a provision that would trigger automatic tax increases in years ahead if tax cuts in the bill failed to boost the economy and generate revenues sufficient to offset the estimated deficit expansion.
• The Senate Banking Committee will vote on Tuesday on the nomination of Federal Reserve Governor Jerome Powell to lead the U.S. central bank, the panel said in a statement.
The committee said on Thursday the vote would be held at 10 a.m. (1500 GMT). If confirmed by the Senate, as expected, Powell would assume the Fed chair post after Janet Yellen’s term expires on Feb. 3.
• The newest nominee to the Federal Reserve’s powerful Board of Governors, Marvin Goodfriend, is “an outstanding person” who would join other accomplished policymakers at the U.S. central bank, Dallas Fed President Robert Kaplan said on Thursday.
• President Donald Trump is considering a plan to oust Secretary of State Rex Tillerson, whose relationship has been strained by the top U.S. diplomat’s softer line on North Korea and other differences, senior administration officials said on Thursday.
Tillerson would be replaced within weeks by CIA Director Mike Pompeo, a Trump loyalist and foreign policy hard-liner, under a White House plan to carry out the most significant staff shake-up so far of the Trump administration.
• Oil rose on Thursday after OPEC and non-OPEC producers led by Russia agreed to extend output cuts until the end of 2018, while also signaling a possible early exit from the deal if the market overheats.
Brent crude futures settled up 46 cents or 0.7 percent to $63.57 a barrel. U.S. crude futures settled up 10 cents or 0.2 percent to $57.40 a barrel.
Brent rose 3.5 percent on the month, with U.S. crude rising 5.5 percent.
Reference: Reuters
Thai
Eng