Dollar gains after weeks of losses as investors focus on U.S. aid package
The dollar rose on Monday, including against major currencies such as the euro and Swiss franc, as investors focused on the fiscal stimulus plan in the United States and U.S.-China tensions ahead of key trade talks this week.
The greenback rose to one-week highs against the euro and Swiss currency.
The dollar index also recouped some losses from July when it fell 4%. Friday’s data on the non-farm payrolls report calmed fears about the U.S. labor market, but the dollar still posted its seventh straight weekly decline.
After talks in Washington over the next round of fiscal stimulus broke down, U.S. President Donald Trump signed executive orders on Saturday, partially restoring enhanced unemployment payments to millions of jobless Americans.
In afternoon trading, the euro fell 0.3% against the dollar to $1.1746, while the U.S. currency gained 0.3% versus the Swiss franc to 0.9152 franc.
Against the yen, the dollar was little changed at 105.93 yen. Overall, the dollar index was up 0.2% at 93.56.
Shaun Osborne, chief FX strategist at Scotiabank in Toronto, said he believes the dollar will remain weak in the medium term but not collapse. He sees the possibility of a short-term correction or at least moderation.
Reference: CNBC
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