Commodity News
HeadLine : Dollar falls as FX investors look past latest U.S. stimulus delay
Date : Dec 30 2020
The greenback was also pinned near two-year lows against the Australian and New Zealand dollars. U.S. Senate Majority Leader Mitch McConnell on Tuesday blocked immediate consideration of a measure to increase COVID-19 relief payments to $2,000, adding another twist to fractious negotiations over fiscal stimulus. The dollar has fallen steadily since President Donald Trump signed a coronavirus aid and spending bill on Sunday, because more stimulus for the world's largest economy reduces demand for the perceived safety of holding the greenback. While the size of relief payments is still uncertain, many analysts say the dollar is likely to resume falling next year because President-elect Joe Biden is expected to push for even more economic support measures. Market moves are likely to be subdued due to low liquidity with many investors away for year-end holidays. The dollar index against a basket of six major currencies stood at 89.974, not far from the lowest in more than two years. Last-minute infighting has cast doubt on some of the details of the U.S. aid package, but many analysts say the U.S. government will keep rolling out fiscal stimulus in some form because a second wave of coronavirus infections is becoming a big threat to the economy. 

Source : Investing
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