Dollar weakens

NEW YORK: The U.S. dollar gave up earlier gains after two lawmakers were reported to seek changes to proposed legislation to overhaul the U.S. tax code in order to garner their support.

U.S. Republican Senator Mike Lee has not decided whether to support a Republican tax bill and wants changes to the child tax credit, an aide to the lawmaker said on Thursday.

Both Lee and Republican Senator Marco Rubio want more of the proposed child tax credit to be refundable, Conn Carroll, Lee´s communications director said, adding Lee is "undecided on the tax bill as currently written.

"Many investors are betting that tax changes will help stimulate the economy and boost growth.

“Markets want to see tax reform,” said Steven Englander, head of research and strategy at Rafiki Capital Management in New York.

Tuesday´s victory by Democrat Doug Jones for a U.S. Senate seat in Alabama further narrows the Republican Senate majority and may make it more difficult to pass tax legislation if negotiations are pushed into next year.

The bill needs a simple majority to pass in the Senate, in which Republicans hold 52 of the 100 seats and no Democrats are expected to support it.