Investing.com - The dollar edged higher against other major currencies on Thursday, but gains were capped by sustained caution surrouding the fate of a major U.S. tax reform plan.
Investors remained focused on a major U.S. tax reform bill as the measure moved toward a U.S. Senate floor vote later this week, amid concerns over how much it will expand the federal deficit.
The greenback found support after data on Wednesday showed that the U.S. economy grew faster than expected in the third quarter.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at 93.38 by 05:15 a.m. ET (09:15 GMT).
EUR/USD slipped 0.21% to 1.1821, while GBP/USD advanced 0.40% to trade at 1.3461.
The single currency showed little reaction to data showing that euro zone comsumer prices consumer price index rose at an annual rate of 1.5% in November, above 1.4% in October.
Meanwhile, the pound remained supported after European Union diplomats said that Britain has moved "close" to EU demands over Brexit.
Elsewhere, the yen and the Swiss franc were lower, with USD/JPY up 0.38% at 112.35 and with USD/CHF adding 0.15% to 0.9864.
The Australian dollar was steady, with AUD/USD at 0.7566, while NZD/USD dropped 0.70% to 0.6834.
Earlier Thursday, the Australian Bureau of Statistics said that building approvals rose 0.9% in October, confounding expectations for a 1.8% decline.
In New Zealand, daata showed that the ANZ Business Confidence index dropped to an eight-year low of -39.3 in November from -10.1 the previous month.
Meanwhile, USD/CAD rose 0.21% to trade at 1.2889.