Currencies Overview: US Dollar at Its Lowest Level in a Week

The dollar is facing difficulties to rise from its lowest level in a week on Tuesday, February 9th, as traders went anxious about the outlook for the greenback with the future of major US financial stimulus package.

Investors have pushed the dollar higher in recent weeks, as Democrats move quickly to approve a $1.9 trillion coronavirus relief package proposed by President Joe Biden, but some analysts said that large fiscal spending accompanied by the continuation of the US Federal Reserve’s ultra-easy policy will be two factors opposite to the US currency.

After trying to rise in the previous session, the dollar generally weakened against its peers with the decline in US Treasury bond yields from high levels reached during the night.

The biggest beneficiary of the dollar’s ​​decline was Bitcoin, which rose above $ 48,000, citing a nearly 20% increase recorded overnight after Tesla announced an investment of $1.5 billion in the cryptocurrency.

The dollar index fell 0.3% to 90.73 in early trading in London, after falling to 90.603 for the first time since February 1.

Soft US jobs data released on Friday to undermine a two-week rally that pushed the dollar to a two-month high of 91.6.

The euro rose 0.2% to $ 1.20775 today, up from a two-month low of $1.9520, which it touched on Friday.

The British pound returned to its highest level since May 2018, climbing to $ 1.3784 in Asia. In the most recent trade, it rose 0.3% to $1.3774.