Dollar eases on cautious optimism around U.S. fiscal package
The dollar edged lower on Monday as investors were cautiously optimistic that an agreement in Washington on a fiscal stimulus package could be reached ahead of the Nov. 3 U.S. election, and that a coronavirus vaccine will be ready by year-end.
The dollar index declined 0.3%, giving back some of its 0.7% gain from last week when a global surge in coronavirus cases and an impasse over the stimulus package stoked caution.
The softness in the safe-haven greenback came after House Speaker Nancy Pelosi said that she believed stimulus legislation could be pushed through before Election Day, while acknowledging an agreement would have to come by Tuesday for that to happen.
The dollar index traded in a tight range of 93.207 to 93.767, and from a technical perspective, is likely to remain range-bound this week, said Marc Chandler, chief market strategist at Bannockburn Global Forex.
Boosting overall market sentiment, drugmaker Pfizer Inc said on Friday it could potentially have a coronavirus vaccine ready in the United States by the end of the year.
Elsewhere, sterling rose 0.22% versus the dollar to $1.2952 as hopes grew that British and European negotiators might be able to salvage post-Brexit trade talks.
Euro/dollar rose 0.44% to $1.1770, while dollar/yen dipped 0.03% to 105.38.
Reference: Reuters
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