Dollar stutters as Trump tax bill debate rages on

The dollar struggled to regain ground on Tuesday as market worries about how the sweeping US tax bill might affect the national economy persist, continuing to drag down American equities, Reuters reports.

Global stock markets rose on Monday after US President Donald Trump delayed the imposition of import tariffs on Europe. Market participants will now turn their attention to debates in the US Senate regarding the President's bill. Experts surveyed by the agency believe this initiative will increase the debt burden on the world's largest economy.

Michael McCarthy, CEO of Moomoo Australia, highlighted multiple factors weighing on the dollar's exchange rate. The analyst noted that the current economic weakness in the US could intensify. Bond market data supports this view.

The expert reported that traders are increasingly considering alternatives to the American currency. For instance, the Japanese yen has gained support following remarks by the Bank of Japan governor, who hinted at potential rate hikes before year-end.