Currencies Overview: EUR and AUD Rallied as Trump’s Threat to Halt Stimulus is Ignored

The euro resumed its rise towards the level of $1.22 and the dollar fell on Wednesday, December 23, as currency dealers did not stop much at US President Donald Trump’s threat not to approve a $ 892 billion aid package linked to Covid-19.

Trump said the long-awaited stimulus package should be adjusted to increase the amount of stimulus, in a possible sign that the package is disrupted.

However, currency markets have not seen much change, as the dollar weakened and currencies considered more risky, such as the Australian dollar, rose.

By 08:35 GMT, the dollar was down 0.1% against a basket of currencies.

The dollar index has fallen by more than 6% this year, as investors are betting that the US Federal Reserve will maintain its ultra-loose policy.

And help expectations for a further decline in the dollar in support of equity markets and emerging market currencies. The euro rose 0.2% to $ 1.2183.

The British pound rose 0.5% to $ 1.3442, amid speculation that the European Union and Britain will announce on Wednesday a trade agreement for the post-Brexit phase.

The Australian dollar gained 0.7% to reach $ 0.7575, supported by indications that a small outbreak of Covid-19 in Sydney will be contained.

The dollar fell 0.2% against the Japanese yen, another safe-haven currency, to 103.44.