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Dollar Exhibits Weakness Against Most Of Its Peers

Dollar Exhibits Weakness Against Most Of Its Peers

The U.S. dollar was weak against most of its peers on Tuesday amid continued focus on U.S. stimulus talks and reports showing a surge in coronavirus cases across the world.

House Speaker Nancy Pelosi said today that Democrats and the White House have moved closer to a coronavirus stimulus agreement. Pelosi is scheduled to discuss again with Treasury Secretary Steve Mnuchin later in the afternoon.

Pelosi downplayed the importance of an end-of-Tuesday deadline she had set to strike an agreement and added that she would continue to discuss, saying lawmakers would have to come to a deal and write a bill before the end of the week in order to have a legistlation ready before Election Day.

Data released by the Commerce Department showed building permits in the United States rose 5.2% from a month earlier to a seasonally adjusted annual rate of 1.553 million in September of 2020, the highest level since March 2007. The rise was also above market expectations of 1.52 million.

Meanwhile, housing starts in the country rose 1.9% to a seasonally adjusted annual rate of 1.415 million units in September 2020, from a downwardly revised 1.388 million in the previous month. The rise in September was below market expectations of 1.457 million units.

The dollar index, which dropped to a low of 93.00, recovered slightly and was last seen at 93.10, down 0.35% from previous close.

Against the Euro, the dollar weakened to $1.1826, losing nearly 0.5% from Monday’s level.

The Pound Sterling was little changed, fetching $1.2949 a sterling, compared with $1.2947 on Monday. Earlier, the currency had firmed up to $1.2979 from $1.2911.

The sterling weakened after a Bank of England policymaker supported considering negative rates as the recent rise in Covid-19 cases could dent the economic recovery from the pandemic.

In an online speech, Gertjan Vlieghe said that additional monetary stimulus may be needed as the outbreak poses downside risks to the economy.

The Yen was slightly weak at 105.49 a dollar, recovering from 105.75. Japan posted a merchandise trade surplus of 674.978 billion yen in September, the Ministry of Finance said on Monday. That was shy of expectations for a surplus of 989.8 billion yen but still up from the 248.3 billion yen surplus in August.

The Aussie was weaker with the AUD-USD pair at 0.7047, down nearly 0.4%, after minutes from the Reserve Bank of Australia’s recent meeting showed that the Board discussed the scope of additional monetary easing to support jobs and the economy.

The Swiss franc was stronger at 0.9070 a dollar, firming up from 0.9099. Data from the Federal Customs Administration showed Swiss exports grew at a faster rate in the third quarter, rising by a real 9.9% sequentially, after a 12.2% decrease in the second quarter. Imports increased 9% in the third quarter, after a 13% decline in the previous quarter.

The Loonie firmed up to 1.3130 a dollar, rising nearly 0.5%, thanks to a surge in crude oil prices.

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