TOKYO, July 4 — The dollar held gains today after President Donald Trump got his signature tax cut bill across the final hurdle and pressure mounted on countries to secure trade deals with the United States.

The greenback rallied from multi-year lows against the euro and British pound hit earlier in the week after stronger than expected US jobs data pushed out the timing for potential rate cuts by the Federal Reserve.

New Zealand’s kiwi dollar, a common proxy for risk appetite, rose 0.2 per cent to US$0.608 after US stocks climbed to new record levels.

The Republican-controlled House of Representatives narrowly passed Trump’s “One, Big, Beautiful Bill” of spending and tax cuts that is estimated to add US$3.4 trillion (RM14.4 trillion) to the nation’s US$36.2 trillion debt.

With the US closed for Independence Day, attention turns to Trump’s July 9 deadline when sweeping tariffs take effect on countries like Japan that have not yet secured trade agreements.

“The dynamic is raising questions about fiscal sustainability and bond market stability,” said Kyle Rodda, senior financial markets analyst at Capital.com, referring to the bill’s passage.

“However, for now, those risks are being looked through as the markets embrace signs of labour market resilience and hopes for further US trade deals.”

The dollar index, which tracks the greenback against major peers, had its worst first half since 1973 as Trump’s chaotic roll-out of sweeping tariffs stoked concerns about the US economy and the safety of Treasuries.

Trump said the US will start sending letters to countries today specifying what tariff rates they will face, a shift from earlier pledges to ink individual deals.

Against the yen the dollar was traded at ¥144.69, down 0.2 per cent from late in the US trading day when it surged 0.8 per cent. The euro added 0.1 per cent to US$1.1769, while sterling traded at US$1.3668, up 0.1 per cent.

The Australian dollar fetched US$0.6577, up 0.1 per cent in early trade.

US Labor Department’s closely watch employment report yesterday showed that nonfarm payrolls increased by 147,000 jobs in June, well ahead of economists’ forecast in a Reuters poll for a rise of 110,000.

Market expectations that the Fed will leave rates unchanged at its July meeting rose to a 95.3 per cent probability, up from 76.2 per cent previously, according to the CME’s Fedwatch tool.

Economists continue to expect the Fed would not start cutting rates again until September or even later. — Reuters