* Senate, House likely to meet next week for U.S. tax bill
* Some analysts are skeptical about tax bill impact on U.S. growth
* Markets focused on U.S. non-farm payrolls report
(Adds comment, updates prices) NEW YORK, Dec 4 (Reuters) - The dollar rose on Monday, hitting a three-week high versus the yen after the U.S. Senate approved a major tax overhaul over the weekend that aims to cut taxes for businesses, while proposing a mixed package of changes for individual Americans. "Dollar bulls are pinning their hopes on the sweeping tax deal leading to a more rapid pace of interest rate hikes from the Federal Reserve," said Jake Spark, U.S. corporate hedging manager at Western Union Business Solutions, in Washington. The Republican tax legislation would be the largest change to U.S. tax laws since the 1980s. Republicans want to add $1.4 trillion over 10 years to the $20 trillion national debt to finance changes that they say would further boost the economy.
Talks will begin, likely this week, between the Senate and the House of Representatives, which already approved its own version of the legislation, to reconcile their respective bills. But Lennon Sweeting, chief market strategist at XE in Toronto, said he expects the dollar's gains to be capped by political concerns in Washington. Former national security adviser Michael Flynn was the first member of Trump's administration to plead guilty to a crime uncovered by Special Counsel Robert Muellers investigation into Russian attempts to influence the 2016 U.S. election and potential collusion by Trump aides. Some market participants were also skeptical about how significant the impact of the tax bill would be on U.S. growth. Jeremy Stretch, head of G10 FX strategy at CIBC Capital Markets in London, said U.S. growth could rise by just 0.2 to 0.3 percent annually, not enough to persuade the Fed to raise rates at a faster pace. The dollar rose to 113.08 yen, the highest since mid-November, and was last at 112.64, up 0.3 percent. The euro, meanwhile, also fell against the dollar, down 0.3 percent at $1.1856, pushing the dollar index to trade up 0.3 percent on the day at 93.181 Investors are also focused this week on a key U.S. non-farm payrolls report, with analysts forecasting a 200,000 jobs gain for November versus 260,000 the previous month. This would be the last employment report before the Fed holds its last policy meeting for the year next week and markets have already priced in a rate hike for that meeting. However, currency markets expect the Fed to raise rates only slightly more than twice next year. Even though U.S. 10-year U.S. yields were higher on Monday, they remain effectively within a 15 basis-point range over the last two months.
Currency bid prices at 3:08PM (2008 GMT)
Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change
Euro/Dollar EUR= $1.1853 $1.1889 -0.30% +12.75% +1.1888 +1.1830 Dollar/Yen JPY= 112.5500 112.1000 +0.40% -3.70% +113.0800 +112.4200 Euro/Yen EURJPY= 133.44 133.46 -0.01% +8.36% +134.0300 +133.3300 Dollar/Swiss CHF= 0.9855 0.9763 +0.94% -3.17% +0.9867 +0.9785 Sterling/Dollar GBP= 1.3466 1.3470 -0.03% +9.16% +1.3538 +1.3420 Dollar/Canadian CAD= 1.2698 1.2681 +0.13% -5.45% +1.2726 +1.2656 Australian/Doll AUD= 0.7595 0.7609 -0.18% +5.27% +0.7613 +0.7580
Euro/Swiss EURCHF= 1.1684 1.1611 +0.63% +9.02% +1.1688 +1.1610 Euro/Sterling EURGBP= 0.8801 0.8822 -0.24% +3.32% +0.8836 +0.8756 NZ NZD= 0.6847 0.6885 -0.55% -1.35% +0.6893 +0.6841
Dollar/Norway NOK= 8.3297 8.2809 +0.59% -3.56% +8.3354 +8.2835 Euro/Norway EURNOK= 9.8763 9.8525 +0.24% +8.70% +9.8830 +9.8260 Dollar/Sweden SEK= 8.4315 8.3582 +0.56% -7.42% +8.4336 +8.3696 Euro/Sweden EURSEK= 9.9957 9.9399 +0.56% +4.34% +9.9978 +9.9318
All spots FX= Tokyo spots AFX= Europe spots EFX= Volatilities FXVOL= Tokyo Forex market info from BOJ TKYFX World central bank news CEN
Economic Forecasts... ECON Official rates...INT/RATE Forex Diary.......MI/DIARY Top events........M/DIARY
Diaries...........DIARY Diaries Index........IND/DIARY Press Digests.....PRESS Polls on G7 economies..SURVEY/ European markets......MARKETS/))
(Reporting by Gertrude Chavez-Dreyfuss; Additional reporting by Saikat Chatterjee in London; Editing by Frances Kerry and Lisa Shumaker)