Dollar slides as risk sentiment rises on U.S. stimulus hopes
The dollar fell against most currencies in choppy trading, as risk sentiment improved after U.S. government officials expressed hope that another stimulus package could be passed to help ease the economic impact of the coronavirus-induced recession.
The greenback slid against the yen and weakened versus currencies associated with higher risk appetite such as the Australian, New Zealand, and Canadian dollars.
The dollar index was last trading little changed on the day at 93.90. The index hit a two-month high last Friday.
Tuesday’s highly contentious debate between U.S. President Donald Trump and Democratic challenger Joe Biden boosted the dollar earlier, as it reinforced concerns that the outcome of the Nov. 3 presidential election could be contested.
The euro was down 0.2% against the dollar at $1.1716. Overall, the dollar was set for its worst quarter since the spring of 2017, with a fall of about 3.3% as hopes for a swift recovery from the COVID-19 economic crash made investors exit safe havens and buy into riskier currencies.
Reference: CNBC
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