Dollar fades after best day in three weeks; euro touches nine-day low
The dollar index retreated on Wednesday, a day after notching its biggest daily percentage gain in three weeks and the euro touched a nine-day low, as global equity markets remained cautious in light of waning hopes for a COVID-19 vaccine or U.S. fiscal stimulus.
Senate Majority Leader Mitch McConnell said on Tuesday the Republican-led U.S. Senate would vote next week on a targeted, $500 billion coronavirus economic aid bill of the type Democrats already have rejected as they hold out for trillions in relief.
The greenback extended declines after data showed the U.S. producer price index for final demand rose 0.4% in September, topping the 0.2% forecast, after advancing 0.3% in August, amid a surge in the cost of hotel and motel accommodation that led to the first year-on-year gain since March.
The dollar index fell 0.232%. The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 93.382 following an earlier decline from levels around 93.6.
The pound fell as low as $1.2865 as hopes dimmed for a Brexit agreement, before recovering as the European Union and Britain are set to prolong talks past a mid-October deadline to try to bridge persistent gaps holding up a new agreement, according to sources and documents.
Sterling was last trading at $1.3046, up 0.87% on the day.
Euro zone industrial production data showed the rate of recovery slowed sharply in August, in line with expectations.
European nations are extending restrictions well beyond social life to close schools, cancel surgeries and enlist legions of student medics as overwhelmed authorities face their nightmare scenario of a COVID-19resurgence at the onset of winter.
The euro was up 0.11% to $1.17575.
Reference: CNBC
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