US Dollar Holds on to Its Gains as Investors’ Enthusiasm For Covid-19 Vaccine Wanes

The dollar held on to its gains in general Thursday, November 12, as investors trimmed their optimistic expectations about the Covid-19 vaccine, which is unlikely to prevent a bleak winter in Europe and the United States with the escalation of the second wave of the pandemic.

The dollar index rose 0.1% during the Asian session, the euro fell by the same rate, and the risk-sensitive Australian and New Zealand dollars fell to 0.3%.

Europe is grappling with a surge in infections and new social restrictions, which contributed to German economic advisers reducing growth forecasts for the next year.

The moves put an end to a long and severe decline in the dollar, which fell about 10% against a basket of currencies between March and the announcement of progress on a Covid-19 vaccine developed by the US Pfizer on Monday.

Investors were reluctant to make major moves as they awaited speeches by US Federal Reserve Chairman Jerome Powell, European Central Bank President Christine Lagarde, and Bank of England Governor Andrew Bailey at a central bank forum on Thursday.

The New Zealand dollar settled in the last trading at $0.6871, while the Australian dollar fell to $0.7264.