On Wednesday, the dollar remained near a two and a half year low as investors evaluated the reasonableness of further fiscal stimulus in the United States. Besides, riskier currencies held onto gains as investor confidence improves.
In the Asian afternoon trade, the Chinese yuan started to decline. As the New York Times stated, U.S. President Joe Biden would not immediately remove the Phase 1 trade agreement President Donald Trump signed with China.
The U.S. dollar fell at 91.19 versus a basket of other major currencies. Significantly, that is the greenback’s lowest level since late April 2018.
Additionally, the euro and the New Zealand dollar steadied after an overnight rise to their two and a half year highs. All because the greenback weakened broadly on renewed hopes for a covid-19 vaccine and U.S. fiscal stimulus.
Furthermore, for the first time since the November 3 election, senators and House members offered $908 billion worth of Covid-19 relief measures. On the stimulus talks meeting set up by U.S. Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi.
According to Nancy Pelosi, after the talks, Mnuchin would review Covid-19 relief proposals.
On Tuesday, Mitch Mcconnel, U.S. Senate leader, announced that Congress should include a new wave of Covid-19 stimulus. It is a must-pass $1.4 trillion spending bill to head off a government shutdown amid the epidemic.
Jerome Powell and Mnuchin requested further help for small businesses
Additionally, Fed Chair Jerome Powell and Mnuchin urged Congress to provide further help for the small businesses. On the concern that the covid-19 situation is getting worse and there is a chance that vaccine may not arrive in time to prevent more companies from crashing.
Significantly, the next Federal Open Market Committee policy meeting will be held on December 15-16.
Moreover, the onshore yuan last changed hands at 6.8960 per dollar, while the U.S. dollar settled at 104.41 against the Japanese yen. Meanwhile, the euro held ground versus the greenback after it hit the highest level since May 2018. The euro last stood at $1.2071.
Furthermore, the British pound also stayed near a three-month high against the U.S dollar. The sterling was slightly changed at $1.3415.
Remarkably, the world’s largest cryptocurrency, Bitcoin, declined by approximately 0.7% and settled at $18,635 after touching an all-time high under $20,000 on December 1.
The Australian dollar hit 0.7373 per dollar after Australia’s economy recover more strongly than expected in the third quarter of 2020.
Additionally, the New Zealand dollar settled at $0.7068 near its highest level since April 2018.