U.S. tax plan pulls dollar up for fourth day

 Rising U.S. yields prompt investors to unwind short bets

* Euro, yen struggles on domestic concerns

The dollar gained for a fourth consecutive day on Thursday as a rise in U.S. Treasury yields encouraged investors to trim their short bets, although markets grew cautious of chasing it higher as the currency approached the top of recent trading ranges.

The dollar climbed to a one-month high against a basket of currencies and is on track to post its best weekly performance this year on hopes that U.S. President Donald Trump’s administration may be making progress on tax reforms.

The dollar was trading 0.24 percent higher against a basket of currencies. It has gained 2.5 percent since hitting a 2 1/2-year low of 91.35 in mid-September.

Trump on Wednesday proposed the biggest U.S. tax overhaul in three decades, offering to cut taxes for most Americans but prompting criticism that the plan favours the rich and companies and could widen the U.S. budget deficit.

The proposal faces an uphill battle in the U.S. Congress, with Trump’s own Republican Party divided over it and Democrats hostile.

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