Investing.com - The dollar edged lower against the other major currencies on Tuesday, as investors remained cautious amid ongoing uncertainty over the fate of a U.S. tax reform plan and ahead of a series of speeches by central bank officials.
Market participants were looking ahead to speeches by Bank of England Governor Mark Carney, Bank of Japan Governor Haruhiko Kuroda and Federal Reserve Chair Janet Yellen, due later in the day.
Investors also continued to monitor developments in the U.S., where Senate Republicans unveiled a tax plan on Thursday that differed from the one crafted by House Republicans, highlighting the challenges to reconciling the differences between the two plans with just a short time before the year-end deadline they have set to pass it.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.19% at 94.22 by 05:15 a.m. ET (09:15 GMT).
The euro was higher, with EUR/USD up 0.43% at 1.1716, while GBP/USD slipped 0.13% to 1.3096 even as data showed that British inflation held at its highest level in five-and-a-half years in October.
The pound remained under presssure amid concerns over Theresa May’s ability to remain on as British prime minister.
The two-day parliamentary debate on the Brexit bill was due to get underway later Tuesday and will take place against a backdrop of heightened political uncertainty.
In the euro zone, data showed that economy grew as expected in the last quarter, while a separate report showed that German economic sentiment rose less than expected in November.
Elswehere, USD/JPY edged up 0.11% to 113.74, while USD/CHF fell 0.16% to 0.9947.
The Australian dollar was stronger, with AUD/USD up 0.12% at 0.7632, while NZD/USD dropped 0.52% to 0.6867.
The Aussie managed to shrug off a string of downbeat Chinese data published earlier in the day.
China is Australia's biggest export partner and New Zealand's second biggest export partner.
Meanwhile, USD/CAD eased up 0.08% to trade at 1.2744.