Amid expectations of a new financial stimulus … the dollar drops to less …


The dollar tumbled to a new level, its lowest in two and a half years, under the weight of renewed expectations for a US financial stimulus.

The market’s appetite for risk increased, causing the dollar to fall to its lowest level since April 2018 due to a proposed economic stimulus package to mitigate the repercussions of the Corona virus pandemic that has bipartisan support, unveiled yesterday worth $ 908 billion, as well as support talks between Treasury Secretary Stephen Mnuchin and Nancy Pelosi, Speaker of the House of Representatives. .

Mnuchin confirmed that President Donald Trump will sign a deal to mitigate the repercussions of the pandemic, proposed by Mitch McConnell, leader of the Republican majority in the US Senate.

McConnell has been pushing for months in favor of a $ 500 billion package that Democrats dismiss as insufficient. The plan includes $ 332.7 billion in new loans and guarantees for small businesses.

Vasily Serebryakov, exchange market analyst at UBS in New York, said the dollar’s downward momentum will continue, adding, “Any rallies in the dollar are likely to find selling in it.”

The dollar index declined slightly to 91.160 after hitting 91.100, its lowest level since late April 2018.

The dollar saw some buying from those looking for a safe haven due to data showing a decline in employment in the US private sector last month.

Private sector jobs increased 307,000 jobs in November, according to the ADB report, while economists expected an increase of 410,000. However, October data was revised to show 404,000 new jobs instead of 365,000 in the previous report.

The euro rose 0.2 percent to $ 1.2095, after earlier touching $ 1.2108, its strongest price since April 2018.

The US currency rose 0.2 percent to 104.47 Japanese yen.

Bitcoin rose 0.6 percent to 18,850 dollars, after hitting a record high of 19,918.01 dollars yesterday.

The pound fell after news that Britain’s trade agreement with the European Union after leaving it “remains uncertain”.

The sterling fell 0.7 percent to $ 1.3324.

The risk-sensitive Australian dollar rose slightly to $ 0.7375. And the currency rebounded in Asia amid data showed that the Australian economy recovered better than expected in the third quarter of the year.


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