Investing.com - The dollar fell to one-and-a-half week lows against other major currencies on Monday, as investors remained cautious regarding recent progress made on the U.S. tax reform front.
The greenback was initially lifted after Republicans on Friday put the finishing touches on a sweeping tax overhaul bill.
They are confident Congress will now pass the tax bill this week, with a Senate vote planned as early as Tuesday.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.16% at 93.31 by 05:15 a.m. ET (09:15 GMT), the lowest since December 6.
The euro and pound were higher, with EUR/USD up 0.30% to 1.1784 and with GBP/USD adding 0.19% to 1.3347.
The euro found support after Germany's Social Democrats agreed on Friday to open coalition talks with Chancellor Angela Merkel, providing a chance to end the country's political deadlock. However, the talks are not expected to begin until January.
Earlier Monday, data showed that euro zone inflation rose in November but still came in below the European Central Bank’s target rate.
USD/JPY was almost unchanged at 112.66, while USD/CHF slipped 0.12% to 0.9893.
Elsewhere, the Australian and New Zealand dollars were stronger, with AUD/USD up 0.13% at 0.7657 and with NZD/USD gaining 0.21% to trade at 0.7009.
Meanwhile, USD/CAD edged 0.12% higher to 1.2880.