Dollar holds firm, Bitcoin tops $10,000

The dollar held firm on Wednesday after Wall Street shot to record peaks amid signs of progress on US tax cuts, while Bitcoin topped $10,000 on a host of exchanges as the frenzy for cryptocurrencies showed no sign of fading.

The dollar steadied against the yen on Wednesday, supported by strong US economic data while North Korea’s latest missile launch had little immediate impact on currency markets, though investors are focusing on how the US will respond to the test.

The greenback was nearly flat at 111.560 yen after rising 0.35 percent the previous day to pull away from a low below 111.00.

“The dollar drew broad bids on strong consumer confidence data, Treasury yields holding firm and relief that the tax bill was passed by the Senate Budget Committee,” said Shin Kadota, senior strategist at Barclays in Tokyo.

Data on Tuesday showed US consumer confidence surged to a near 17-year high in November, driven by a robust labor market.

The prospects for a US tax cut seemed to improve after Senate Republicans rammed forward their bill in a partisan committee vote.

Some analysts, however, did warn of the risks of unintended consequences if the package was passed.

“Tax cuts will mainly boost the demand side of the economy at a time when the economy has little spare capacity,” said Jeremy Lawson, chief economist at Standard Life Investments.