The dollar drops to its lowest level in two and a half years – economic – the world today

On Thursday, the dollar hit its lowest level in two-and-a-half years against major competing currencies, as risk appetite was boosted by progress towards a deal on a US stimulus package and a deal linked to the Britain’s exit from the European Union (Brexit).

On Wednesday, lawmakers and aides said congressional negotiators are “approaching” a $ 900 billion aid bill to mitigate the impact of Covid-19, in light of more positive rhetoric than ‘it hasn’t been for months.

Across the Atlantic, the president of the European Commission said a deal with the UK is closer, although success is not guaranteed.

Michael McCarthy, senior analyst at CMC Markets brokerage in Sydney, said: “With increasing global optimism about the growth outlook for 2021, the dollar is weakening.

“A weaker dollar is more likely.”

The dollar index fell to 89.995 in Asia, crossing the 90 mark for the first time since April 2018.

The euro was trading at $ 1.2280 in Asia, having previously hit $ 1.22350, which is also the highest level since April 2018.

The British pound hit $ 1.3536, after climbing to $ 1.3553 in the previous session for the first time since May 2018.

On Wednesday, the U.S. Federal Reserve pledged to continue pumping liquidity into financial markets until the U.S. economy recovers, a promise of long-term aid that fell short of expectations. some investors with immediate action to stem a recent decline related to the pandemic.

The dollar index rose after the US Central Bank’s announcement, but the relief was short lived.

The dollar was little changed at 103,475 yen, which is also another safe haven currency.

The yuan traded in internal trade at 6.5366 per dollar, while the currency traded in foreign trade at 6.5089 per dollar, near the level of 6.4975 reached earlier this month- here for the first time since June 2018.

Meanwhile, the Swiss franc was little changed after hitting a six-year high of 0.8826 to the dollar on Wednesday, when the US Treasury classified Switzerland as currency manipulator.

The Australian dollar hit 75,940 US cents, the highest level since June 2018. Its New Zealand counterpart hit 74.41 US cents, a level not recorded since April 2018.

Bitcoin was trading at $ 22,181 after breaking the $ 20,000 barrier for the first time overnight.

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