Dollar down as US stimulus, Brexit speaks of optimism from Investing.com


© Reuters.

From Gina Lee

Investing.com – The dollar fell in Asia Thursday morning and investors continued to withdraw from the safe haven asset following progress in US stimulus measures and Brexit talks, adding to risk appetite.

The value that tracks the greenback against a basket of other currencies fell 0.04% to 90.102 by 9:12 p.m. ET (02:12 p.m. GMT). Although the index was temporarily raised after the US Federal Reserve made its policy decision on Wednesday, it fell below a fresh low of 90.126, a level not seen since April 2018.

Republicans and Democrats in Congress reportedly “approached” a $ 900 billion stimulus plan on Wednesday, the most positive note in months. They are also working to pass a $ 1.4 trillion spending bill for the fiscal year beginning Oct. 1 through Friday to prevent the government from closing.

Some investors said the growing optimism in the market will result in a weaker dollar.

“As the world becomes more optimistic about the growth outlook for 2021, the dollar has weakened … a further weakening of the dollar is planned,” Michael McCarthy, chief strategist of CMC Markets, told Reuters.

The pair was down 0.15% to 103.33.

The pair rose 0.03% to 0.7579 and the pair rose 0.25% to 0.7128.

The pair rose 0.05% to 6.5358.

The pair was up 0.16% to 1.3529. The pound was strengthened by advances in Brexit talks between the UK and the European Union, rising to $ 1.3553, a level not seen since the last meeting in May 2018.

Although European Commission President Ursula von der Leyen said both sides were closer to an agreement, she warned that success was not guaranteed.

“I can’t tell you whether or not there will be a deal. But I can tell you that there is now a way to come to an agreement. The path may be very narrow, but it is there, ”said von der Leyen to the European Parliament on Wednesday.

The euro began the session at $ 1.21945 after hitting $ 1.22120 overnight, its strongest level since April 2018.

When the Fed concluded its two-day political meeting on Wednesday, it promised to continue pumping cash into the financial markets until the US economic recovery is secured. However, this promise of long-term aid disappointed expectations for faster relief as a second wave of COVID-19 cases in the country leads to an economic downturn.

Other central banks will also make policy decisions before the end of the week. The Bank of England and the Mexican, Swiss and Indonesian central banks will make their policy decisions later in the day, while the Bank of Japan and the Bank of Russia will make their decisions on Friday.

Meanwhile, Bitcoin crossed the $ 20,000 mark for the first time overnight, trading at $ 21,420 at the start of the session.

“Bitcoin is still up to date,” said Ray Attrill, head of foreign exchange strategy at National Australia Bank (OTC :), in a note.

“I still don’t want one for Christmas,” added the note.

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