Investing.com - The dollar was hovering at a one-month peak against other major currencies on Thursday, still supported by hopes for an upcoming U.S. tax reform and hawkish comments by Federal Reserve Chair Janet Yellen.
The greenback strengthened following reports on Wednesday that U.S. President Donald Trump proposed the biggest U.S. tax overhaul in three decades.
The proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.
The U.S. dollar was already supported by Wednesday's upbeat U.S. data on durable goods orders and fresh expectations for a December rate hike by the Federal Reserve.
EUR/USD edged up 0.18% to 1.1767, off the previous session's one-month lows of 1.1719, while GBP/USD slipped 0.16% to 1.3363, the lowest since September 14.
Political uncertainty persisted in Germany, but Chancellor Angela Merkel seemed closer to forming a government after Wolfgang Schaeuble decided to become president of the parliament, allowing another party to take the Finance Ministry.
In the U.K., Bank of England Governor Mark Carney said in a speech on Thursday that Britain’s economic prosperity will depend on the deal made to leave the European Union.
Carney added that stable inflation is the best contribution that monetary policy can make to the public good.
The yen was little changed, with USD/JPY at 112.81, while USD/CHF rose 0.19% to trade at 0.9740.
Earlier Thursday, Bank of Japan Governor Haruhiko Kuroda said in a speech that the country's economic expansion is highly sustainable and that he expects inflation to accelerate towards the central bank's 2% target.
Elsewhere, the Australian and New Zealand dollars were weaker, with AUD/USD down 0.31% at 0.7823, the lowest since July 18, and with NZD/USD shedding 0.13% to 0.7190.
In a widely expected move, the Reserve Bank of New Zealand left interest rates unchanged at 1.75% at the conclusion of its policy meeting on Thursday.
Commenting on the decision, the central bank said that it doesn’t expect to raise interest rates for some time as the economic growth outlook weakens and inflation slows.
Meanwhile, USD/CAD eased up 0.08% toa fresh three-week high of 1.2405.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at a one-month peak of 93.29 by 05:20 a.m. ET (09:20 GMT).