Billions of dollars in overseas profits of US corporations are held offshore to avoid paying the 35% US corporate tax rate.
Traders say they are hearing talk that Obama will propose a temporary tax-holiday/cut on overseas profits so countries will repatriate those profits.
The Bush administration did that in the wake of 9/11 and prompted a dollar rally.
The dollar is getting a broad lift across the board on the talk, combined with news that the IMF has cut its growth outlook for the Euro zone.
EUR/USD is at US session lows around 1.4020, GBP/USD is at 1.5970.
By Jamie Coleman