The dollar held gains on Friday after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States.
The greenback rallied from multi-year lows against the euro and the British pound hit earlier in the week after stronger-than-expected US jobs data pushed out the timing for potential rate cuts by the Federal Reserve.
The Republican-controlled House of Representatives narrowly passed Trumps One, Big, Beautiful Bill of spending and tax cuts that is estimated to add 3.4 trillion to the nations 36.2 trillion debt. Trump is expected to sign the bill into law on Friday.
With the US closed for Independence Day, attention turns to Trumps July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements.
The dynamic is raising questions about fiscal sustainability and bond market stability, said Kyle Rodda, senior financial markets analyst at Capital.com, referring to the bills passage.
