The dollar fell against a basket of the other major currencies on Friday as investors remained skeptical over whether Republicans can pass a historic tax overhaul.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.25% to 93.61 in late trade. For the week, the index was down 0.74%, its second consecutive weekly decline.
The House of Representatives on Thursday passed a bill that would lower corporate taxes and cut individual taxes for most households in 2018, in a step towards the biggest U.S. tax code overhaul since the 1980s.
But the legislation may face a tougher fight in the Senate amid resistance within Republican ranks. Senate lawmakers are expected to vote on their version of the bill after this week’s Thanksgiving holiday.
The dollar was also pressured lower by news reports that special counsel Robert Mueller’s investigators probing possible Russian interference in the 2016 U.S. election had subpoenaed President Donald Trump’s campaign requesting documents.
The reports added to concerns that the probe will hinder the Trump administration’s ability to pass tax reform or other fiscal reform measures that would support the economy.
The dollar fell to five-week lows against the yen, with USD/JPY down 0.86% to 112.09 in late trade.
The euro pushed higher, with EUR/USD up 0.18% at 1.1791 late Friday.
Sterling pared back early gains, with GBP/USD retreating from a two-and-a-half week high to 1.3213 in late trade after the European Union repeated an early December deadline for Prime Minister Theresa May to move on Britain’s Brexit divorce bill.
Meanwhile, the Australian and New Zealand dollar both ended the week sharply lower against the greenback as the narrowing spread between U.S. and both Australian and New Zealand government debt undermined their appeal as carry trades.
AUD/USD was down 0.32% at 0.7564 in late trade and ended the week down 1.25%, while NZD/USD skidded 0.45% to 0.6817 to end the week down 1.62%.
In the coming week, investors will be focused on Wednesday’s Federal Reserve meeting minutes for fresh clues on the likely trajectory of monetary policy.
U.S. data on durable goods orders will be the highlight of the holiday-shortened week. Markets stateside will remain closed on Thursday for the Thanksgiving holiday.

Monday, November 20

European Central Bank President Mario Draghi is to testify on the economy and monetary policy in the European Parliament in Brussels.

Tuesday, November 21

The Reserve Bank of Australia is to publish the minutes of its latest policy setting meeting.
The UK is to release data on public sector borrowing. Later in the day, Bank of England Governor Mark Carney is to appear before the Treasury Select Committee, in London.
Canada is to release data on wholesale sales.
The U.S. is to publish a report on existing home sales.
Fed Chair Janet Yellen is to deliver remarks at a panel discussion in New York.

Wednesday, November 22

The UK government is to announce its annual budget.
The U.S. is to release data on durable goods orders and unemployment claims. Later in the day, the Fed is to publish the minutes of its latest policy setting meeting.
New Zealand is to release data on retail sales.

Thursday, November 23

Financial markets in Japan will be closed for a holiday.
The euro zone is to release data on manufacturing and service sector activity.
The UK is to produce revised data on third quarter economic growth.
The ECB is to publish the minutes of its latest policy setting meeting.
Financial markets in the U.S. will be closed for the Thanksgiving holiday.
Canada is to report on retail sales.
Swiss National Bank Chairman Thomas Jordan is to speak at an event in Basel.

Friday, November 24

New Zealand is to release data on the trade balance.
The Ifo Institute is to report on German business climate.