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Forex- Dollar Falls as Bitcoin Surges

The U.S. dollar dipped down on Wednesday. - The dollar slipped down on Wednesday as Bitcoin surged to over $11,000 and sterling recovered against the greenback.

The losses were offset by strong U.S. third-quarter economic growth data and hope that the tax reform bill will be passed by the end of the year.

On Tuesday, the Senate Budget Committee approved the Senate's tax plan, bringing it closer to a floor vote. Doubts remain however on whether Congress can pass the bill before the end of the year.

Meanwhile U.S. gross domestic product expanded by 3.3% in the third quarter, while pending new homes rose 3.5% in October. The strong economic data increases the likelihood of the Federal Reserve rising rates in December and into 2018, which would increase the strength of the dollar.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.13% at 93.08 by 11:50 AM ET (4:50 PM GMT).

Elsewhere the euro rose while sterling gained ground against the dollar. EUR/USD rose 0.19% to 1.1862, while GBP/USD advanced 0.70% to trade at 1.3439 after data earlier showed that UK consumer credit growth cooled to a 18-month low in October.

Markets didn’t react to reports that North Korea had successfully launched a new type of intercontinental ballistic missile that it claimed was capable of reaching the U.S. mainland.

The dollar rose up against the Japanese yen, with USD/JPY rising 0.24% to 111.75.

The Australian and New Zealand dollars were weaker, with AUD/USD down 0.30% at 0.7572 and with NZD/USD flat at 0.6898.

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