US dollar struggles as tax bill doubts grow

London

THE dollar declined for a second consecutive day on Tuesday as investors took the view that a major US tax overhaul would be unlikely to boost the economy significantly, with most major currencies trading in tight ranges in a relatively thin market.

World stock markets have roared ahead on US tax cut hopes, but the greenback has remained muted. Traders believe most of the positive impact of the cuts to corporation tax have already been priced in, while expectations that the reform would trigger a wave of repatriated dollars overplayed.