- New Zealand dollar falls on central bank uncertainty
- Greenback near 3-month high vs yen in wake of Abe win
- Euro steady ahead of ECB policy meeting on Thursday
(Updates market action, changes dateline, previous LONDON)
The dollar was little changed on Tuesday against a basket of currencies on speculation about possible fresh leadership at the U.S. Federal Reserve and bets that a tax cut package is on track to be enacted.
The New Zealand dollar was the biggest mover among G10 currencies, declining to a five-month low after the incoming Labour-led coalition government said it plans to review and reform the Central Bank Act to include employment, alongside inflation, as a dual target.
"What's dominating the narrative is the Fed chair position. You overlay that with some momentum on tax reform. That puts the dollar on decent footing," said Mazen Issa, senior FX strategist at TD Securities in New York.
At 10:15 a.m. (1415 GMT), the index that tracks the dollar against a group of six currencies .DXY , was at 93.829, down 0.1 percent from Monday when it reached a 2-1/2-week peak of 94.017.
U.S. President Donald Trump told reporters on Monday he is "very, very close" to deciding who should lead the Federal Reserve after interviewing five candidates for the position.
His possible nominees include current Fed Chair Janet Yellen, whose term expires in February, as well as Fed Governor Jerome Powell, Stanford University economist John Taylor, Trump's chief economic advisor Gary Cohn, and former Fed Governor Kevin Warsh.
Hopes that Congress will pass a package of tax cuts have helped to strengthen the dollar and pushed U.S. stocks to record highs, although skepticism has persisted in the absence of details on the overhaul and perceived discord between Trump and top Republican lawmakers.
The greenback hovered near a three-month high versus the yen JPY= on Tuesday, gaining 0.3 percent at 113.79 yen JPY= .
It held below a three-month peak of 114.09 yen in reaction to Japanese Prime Minister Shinzo Abe's ruling Liberal Democratic Party-led coalition election win on Sunday.
Abe's victory reduced anxiety that the economic steps implemented under his leadership, including an expansive asset-purchase program by the Bank of Japan, would be disrupted.
The euro increased 0.2 percent to $1.1767 EUR= and rose 0.5 percent to 133.91 yen EURJPY= in advance of the European Central Bank's policy meeting on Thursday.
Traders have expected the ECB to signal a gradual removal of monetary stimulus as euro zone economic growth has improved.
The New Zealand dollar has lost nearly 5 percent on worries that a harder stance on immigration and foreign investment under its new government would hamper economic growth. It shed 0.75 percent to $0.6913 after hitting its lowest level since May 19. NZD=D4
======================================================== Currency bid prices at 10:17AM (1417 GMT)Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Euro/Dollar EUR= $1.1772 $1.1747 +0.21% +11.98% +1.1775 +1.1743 Dollar/Yen JPY= 113.7800 113.4200 +0.32% -2.64% +113.9800 +113.2700 Euro/Yen EURJPY= 133.94 133.26 +0.51% +8.77% +133.9900 +133.1800 Dollar/Swiss CHF= 0.9874 0.9848 +0.26% -2.99% +0.9888 +0.9839 Sterling/Dollar GBP= 1.3157 1.3196 -0.30% +6.66% +1.3227 +1.3147 Dollar/Canadian CAD= 1.2647 1.2650 -0.02% -5.83% +1.2668 +1.2621 Australian/Doll AUD= 0.7784 0.7805 -0.27% +7.89% +0.7824 +0.7774 arEuro/Swiss EURCHF= 1.1625 1.1570 +0.48% +8.47% +1.1631 +1.1571 Euro/Sterling EURGBP= 0.8947 0.8902 +0.51% +5.04% +0.8949 +0.8894 NZ NZD= 0.6909 0.6964 -0.79% -0.46% +0.7003 +0.6907 Dollar/DollarDollar/Norway NOK= 7.9809 7.9989 -0.23% -7.60% +8.0162 +7.9803 Euro/Norway EURNOK= 9.3965 9.4001 -0.04% +3.42% +9.4155 +9.3861 Dollar/Sweden SEK= 8.2021 8.1989 +0.22% -9.94% +8.2103 +8.1865 Euro/Sweden EURSEK= 9.6549 9.6335 +0.22% +0.78% +9.6584 +9.6308 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/))
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