The dollar fell to its lowest in a week against a basket of major currencies on Thursday after Republicans in the U.S. House of Representatives released proposals to overhaul the tax code.
The legislation called for slashing the corporate tax rate to 20 percent from 35 percent and reducing the number of tax brackets for individuals, according to a summary document obtained by Reuters.
Analysts said the proposals put forth were both unlikely to gather sufficient support in Congress and unlikely to have a significant impact on the U.S. economy. "Massive" tax cuts had been a major campaign promise of U.S. President Donald Trump.
"The market believes that the likelihood of tax reform passing quickly is diminished," said Douglas Borthwick, managing director at Chapdelaine Foreign Exchange. "... the market believes that it's not enough to be meaningful. It's doubtful that it'll be meaningful for the overall GDP of the country."