The greenback opened higher at the opening of trading earlier in the week with a 0.2% gain against most major currencies making the dollar index rise at 91.73.
However, the king of the currency remained traded at a 1 -month low with 10 -year US treasury yields remaining low around 1.56%.
Amid a quiet Asian trade session following a lack of key catalysts, there have been reports that US President Joe Biden will lower his tax hike target to get bipartisan approval in his infrastructure spending plan.
While raising the rate from 21% to 25% would raise about $ 600 billion over 15 years, it would leave President Biden unable to pay for the previously proposed $ 2.25 trillion 8 -year infrastructure package.
If this is true, then Biden will have to find other ways to fund the stimulus package or will likely reduce the amount. Previously, Biden planned to raise taxes to 28%.
Although the White House has not openly backed away from the 28% proposal proposed by the president, it does show it is willing to find a compromise to pay for its spending plan.
