Investing.com - The dollar extended gains against the yen on Wednesday after U.S. Treasury Secretary Steven Mnuchin confirmed that the Trump administration's tax plan will include a 15% corporate tax rate.
USD/JPY touched highs of 111.73 immediately following the remarks, the most since March 31 and was at 111.48 by 8.53 ET, up 0.36% for the day.
Mnuchin said that U.S. President Donald Trump wants to slash the corporate tax rate to 15% from 35% currently.
The aim is to cut the taxes paid by small businesses, rather than create a loophole for the rich, he said.
Speaking to CNBC ahead of today's official announcement, which is expected at around 13.30 ET, Mnuchin said it would be the biggest tax cut and largest tax reform in history.
Mnuchin added that the Trump administration wants to simplify the U.S. tax code.
He also indicated that the White House has shelved the so-called border adjustment tax for now, saying it doesn't work "in its current form."
He said there is a fundamental agreement with Congress about tax reforms, but the details need to be worked out.
The euro was lower against the dollar, with EUR/USD sliding 0.42% to 1.0888 as the single currency pulled back after surging to five-and-a-half month highs on first round French presidential election results.
The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was up 0.24% to 98.96.
The index touched a low of 98.56 on Tuesday, the weakest since November 10, pressured lower by the stronger euro.
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