U.S. dollar skids from four-week high; euro gains
The dollar slid from a four-week high on Wednesday, led by losses against the euro after a news report said European Central Bank officials have become more confident in their outlook for the region’s recovery.
Some analysts, however, expect the dollar to hold recent gains after a steep fall the last few months Citing euro area officials, Bloomberg News reported that the ECB’s upcoming projections for output and inflation will show only slight changes to the June outlook, with gross domestic product for this year to be revised higher and private consumption doing much better than expected.
The report comes ahead of Thursday’s ECB monetary policy meeting.
In mid-morning trading, the euro rose 0.4% against the dollar to $1.1820, which pushed the dollar index down 0.3% at 93.214. Earlier in the session, the index advanced to a four-week peak.
Against the yen, however, the dollar rose 0.2% to 106.19 yen.
Earlier, the safe-haven yen had gained after news of a delay in the roll-out of a vaccine for COVID.
AstraZeneca Plc said it had paused global trials, including large late-stage trials, of its experimental coronavirus vaccine due to an unexplained illness in a study participant.
Roll-out of an effective vaccine is seen as key for economies to overcome the effects of the pandemic.
Sterling, meanwhile, rose back above $1.30 on Wednesday after an EU statement that said it would not suspend Brexit negotiations over the British government’s new internal market bill. The pound was last up 0.1% at $1.2990.
Reference: CNBC
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