The dollar was little changed against other major counterparts on Wednesday, as optimism sparked by the vote of a major U.S. tax reform plan began to fade as traders were waiting for the bill to be finalized and amid other U.S. political concerns. Sentiment on the greenback weakened due to the possibility of a U.S. government shutdown if lawmakers fail to reach a budget agreement this week. Government funding is set to expire Friday. The U.S. dollar was initially boosted after the U.S. Senate passed a tax overhaul package over the weekend amid expectations that tax cuts for corporations will stimulate the U.S. economy. Some investors also believe the boost to the economy will prompt the Federal Reserve to raise interest rates at a faster pace. Republicans are aiming to send a final tax bill to the White House before Christmas, with the House and Senate working to reconcile separate versions of the plan. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was little changed at 93.30 by 05:15 a.m. ET (09:15 GMT).
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