Dollar Extends Losses Against Major Currencies
US Dollar extends losses against key market currencies as investors wait for us the stimulus package
The US dollar extended its losses against key currencies to a second day as the market waited for US legislators to agree on a stimulus package that would mitigate the impact of the Coronavirus outbreak, and the S&P 500 index futures fell.
The dollar fell again against the G-10 coins. House of Representatives Speaker Nancy Pelosi says Congress will reach an agreement on stimulus measures. A deal is close to being reached, but the vote is unlikely to take place tonight.
The Bloomberg Dollar Spot Index fell 0.5 percent. The dollar gauge declined 0.7 percent on Tuesday. The S & P 500 index futures fell 1 percent.
Jason Wong, the senior market strategist at Bank of New Zealand, said: “the US seems to be the new center of the outbreak of COVID-19 and that doesn’t help at all in terms of perception. It’s too early to declare that the upward trend in the dollar is over. It’s not so hard to see another drop in risk appetite for a rise in the dollar.”
The New Zealand Dollar / US Dollar parity traded at 0.5836, up 0.1 percent. The Australian Dollar / U.S. Dollar traded at 0.5981, rising 0.4 percent. The dollar/yen parity found buyers at 110.99 at 0.2 percent minus Wednesday after seeing a month high at 111.71 on Tuesday.