US Dollar Falling to Its Lowest Level in a Month on Hopes of US Stimulus

The dollar fell to its lowest level in the month of Wednesday after US President Donald Trump raised hopes for a major fiscal stimulus package, sparking a wave of optimism in the market that saw traders turn to bet on higher-risk currencies.

Negotiations between US lawmakers have continued in Washington on and off since August as Democrats sought a bigger package to help counter the economic fallout from the Corona pandemic.

Trump raised hopes for a breakthrough on Tuesday, after saying he would accept more aid despite opposition from his Republican party. His comments raised appetite for some risk in currency market moves.

The dollar fell 0.3% against a basket of currencies, to 92.801.

The British pound jumped more than 0.8% against the US dollar after the European Union indicated that a trade deal with the United Kingdom was still possible.

The New Zealand dollar and its higher-risk Australian counterpart rose, and the New Zealand dollar increased by 0.6%, and the Australian dollar rose 0.5%.

The Norwegian krone increased to a one-week high of 9.196 against the US dollar. The Canadian dollar rose at its highest rate in more than six weeks, touching 1.3081 against the dollar.

The euro rose to its highest level in a month against the dollar in early trade, increasing 0.3 percent to $ 1.18555 by 0723 GMT.

The Chinese yuan also rose in domestic and foreign transactions due to more important factors, the most important of which are stronger directives from the central bank and new data indicating a more sustainable recovery for the second largest global economy.

The yuan posted its highest level in foreign transactions in two years against the US dollar near the end of the Asian session and reached 6.6278 against the dollar before declining slightly. It rose 0.4%to 6.6374.