Demand For US Dollar Rises as Stocks Decline

The dollar held on to its gains against most currencies on Thursday, after signs of an economic slowdown in Europe and the United States revived concerns about the repercussions of the second wave of coronavirus infections.

The Euro, already hit by fears of a return to tight lockdown measures, faces an additional hurdle on Thursday as German business confidence data will be published.

The dollar is likely to continue its rise, as a new increase in Corona cases in Europe has boosted the appetite for it as a safe haven, while policy makers at the Federal Reserve (US Central Bank) called on the US government to provide more financial support.

The dollar was trading at 1.656 against the Euro, just below its two-month high it hit on Wednesday.

The dollar consolidated near its nine-month high against the Swiss franc at 0.9236, and also held on to the gains it recorded in the previous session against the Japanese yen, which recorded 105.45 yen.

The pound traded against $ 1.2705, near its lowest level against the US currency since late July.

The dollar rose this week after an increase in cases of corona in Europe and Britain, which undermined investor optimism about progress in developing a vaccine.

The dollar index scored 94.430 against a basket of six major currencies today, near its highest level in nine weeks.

The Australian dollar fell 0.45% to $ 0.7042, nearing its lowest level since July 21.

The New Zealand dollar fell 0.3% to $ 0.6529, adding to a 1.3% decline in the previous session when the New Zealand Central Bank hinted at more monetary easing.