US Dollar Declining Due to Investor Risk Appetite

Today, Monday, the US dollar sat near its low level in mid-2018, after the optimism in global markets prompted investors to buy high-risk currencies such as the Chinese yuan, despite a renewed rise in infections due to the Corona virus pandemic.

The dollar has taken a declining path due to low interest rates in the United States, the huge deficit in the US budget and trade, and the belief that the recovery in global trade will lead currencies other than the dollar
To climb.

The dollar index recorded its first annual loss since 2017 last year when it fell almost 13% from its highest level in three years due to the panic caused by the height of the Coronavirus Pandemic in March.

The dollar was in the latest trading, down 0.14% at 89.640, not much higher than its lowest level in more than two and a half years, which it hit last week at 89.515.

The Chinese yuan rose more than 0.9% to its highest level in 30 months at 6.4693 per dollar.

The safe haven Japanese yen rose 0.4% to 102.90 against the dollar.

The Australian and New Zealand dollars each gained close to 0.4% to settle at a level just below several-year highs.

The euro, which had fallen due to profit-taking on New Year’s Eve, rose 0.4% to $ 1.2270.

The pound sterling, which is still supported by Britain’s trade agreement with the European Union, also rose to $1.3678, which it last recorded in early 2018.