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Dollar Weakens Against Most Of Its Rivals

Dollar Weakens Against Most Of Its Rivals

The U.S. dollar, which retreated during the Asian session on Wednesday, giving up gains posted a day earlier, recovered a bit in the European session, but faltered again as the day progressed.

The dollar lost ground as President Donald Trump’s backing for partial stimulus lifted risk sentiment.

Trump, who rejected Democrats’ fiscal aid proposal and instructed his administration’s negotiators to halt discussions with Democrats on relief plan, asked Congress to approve paycheck protection and airline support.

“The House & Senate should IMMEDIATELY Approve 25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign now,” Trump tweeted.

The markets, which digested the minutes of the Federal Reserve’s latest policy meeting, were also hoping the central bank will consider more accommodation to keep the economic recovery on track.

The dollar index, which eased to 93.56, kept moving in a tight band and was last seen at 93.63, down marginally from previous close.

The Euro was stronger by about 0.3% with a unit fetching $1.1768, compared with $1.1734 Tuesday evening.

The Pound Sterling firmed up as well, with a unit of Sterling fetching $1.2917, more than 0.3% from previous close.

The Yen weakened to 105.98 a dollar, losing ground from 105.64 overnight.

Against the Aussie, the dollar was weak by more than 0.5%, as the Dollar-Aussie pair traded at 0.7140, weakening from 0.7102.

The Swiss franc was up marginally at 0.9172 a dollar, while the Loonie was trading at C$1.3258 a unit of greenback, firming up from C$1.3312.

The material has been provided by InstaForex Company – www.instaforex.com