Dollar Gains Halted And Risks Drive Speculators Away

The dollar held on to its gains against most currencies on Wednesday, with renewed doubts about the Corona virus vaccine and the absence of an agreement on an additional financial stimulus package in the United States, which pushed dealers towards safer assets.

There was no significant change in the yuan’s price against the dollar after the central bank’s determination of the daily midpoint of the yuan’s price came in line with expectations, indicating that the authorities have stopped attempts to curb the currency.

Analysts said that the losses of the euro and the pound are expected to continue with the return of restrictions on economic activity in Europe and Britain to address a second wave of infections with the Corona virus, which raises investor concern.

In the latest trading, the dollar recorded 1.1743 against the euro, maintaining the 0.6% gain from the previous session.

Sterling stood at $ 1.2926, after losing 1% on Tuesday.

The pound was also affected by concerns about trade negotiations between Britain and the European Union not making any progress and the possibility of the Bank of England adopting negative interest rates.

In domestic transactions, the yuan scored 6.7408 against the dollar. On Monday, the yuan recorded its biggest daily decline in seven months.

There has been little change in the Australian dollar, but it is expected that its losses, which amounted to 1%, will be exacerbated yesterday by concern about a dispute with Beijing over coal imports, according to dealers.

In New Zealand, the dollar rose against its US counterpart.