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The dollar fell to its lowest level in a week against a basket of currencies on Thursday, August 13th, while analysts pointed out that the reasons for the weakness lie in the solid performance of the stock market and the failure of additional stimulus to the US economy.
After losing 10% of its value since its peak in March, the dollar index is hovering around its lowest level in more than two years since late July. Today, it is trading down 0.3% to 93.093. Against the euro, the dollar fell 0.5% to $ 1.1840, adding to a 0.4% decline on Wednesday.
Analysts pointed out that the strength of the stock market recently, despite the rise in cases of Coronavirus, the faltering of a new US financial support package and geopolitical tension is undermining the dollar.
US stocks rose on Wednesday and the S&P 500 index hit record highs.
The Japanese yen regained some of its losses the previous day, to trade up 0.3% to 106.62 per dollar. But by mid-session in London, he gave up those gains and settled. The pound rose 0.5% to $ 1.3099.
The Chinese yuan rose in internal trading for a while, to its highest level in five months, before settling at 6.9421 for the dollar. US and Chinese officials will meet on Saturday to review phase one of the trade deal between the two countries.
