The dollar is at a minimum of two and a half years amid optimism about stimulus in the U.S., the pound strengthened

Uncategorized

TOKYO (Reuters) – The dollar held near a two-and-a-half-year low on Tuesday, while investors bought riskier assets after the U.S. House of Representatives on Monday voted to increase payments to individuals to $2,000 as part of an incentive bill.
The US House of Representatives on Monday voted by a majority of 275 to 134 to raise the amount of one-time assistance to citizens in the face of a pandemic to $2,000, which was demanded by President Donald Trump. However, it is unclear whether the new version of the stimulus and government spending bill will be approved by the Senate, which is under Republican control.
Last week’s trade deal between the UK and the European Union also boosted global growth prospects, although many aspects of the London-Brussels relationship have yet to be agreed.
“There’s a lot of optimism, and it’s mostly coming from the stock markets,” said Bart Wakabayashi of State Street Bank and Trust.
“The dollar is under pressure, and this will continue next year.”
The dollar index against a basket of major currencies fell by 0.23% to 90.13 by 09: 51 Moscow time, approaching the level of 89.723, reached in mid-December for the first time since April 2018.
The euro rose 0.21% to $1.224, staying close to the two-and-a-half-year peak it touched earlier this month.
The Japanese yen rose 0.07% against the dollar to 103.71 yen.
The pound rose 0.16% to $ 1.3471 after two days of declines due to profit-taking gained after the announcement of the trade deal.
“People are still trying to understand what the Brexit agreement means,” which puts pressure on the pound, Wakabayashi said.
“Nothing has been decided on the financial markets and this is a big negative for the UK.”
The Aussie rose 0.17% to $ 0.759. The New Zealand dollar rose 0.31% to $ 0.7119.
The yuan on the mainland market rose 0.03% to 6,5329, on the offshore market-rose 0.17% to 6,5209.
Bitcoin fell 2.56% to $ 26,344. 64, continuing its retreat from the record of $28,377.94 set on Sunday.
(Kevin Buckland. Translated by Elizaveta Zhuravleva. Editor Anna Kozlova)

IZIFOREX.COM
Add a comment