Euro cruises higher as dollar skids again reuters.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from reuters.com Daily Mail and Mail on Sunday newspapers.
Euro cruises higher as dollar skids again
The dollar languished near a 2-1/2-year low on Tuesday as investors were encouraged to take on more risk after U.S. lawmakers pushed forward with an enhanced COVID-19 relief package.
The House of Representatives voted on Monday to more than triple stimulus payments to Americans to $2,000 from $600, sending the plan on to the Senate for a vote.
The euro and pound also strengthened as London reopened after its Christmas break. Traders were digesting the EU-UK Brexit trade agreement reached late last week and relieved a ‘no-deal’ had been avoided.
Euro bulls pushed the single currency up to $1.2235, also buoyed by talk of a EU-China trade pact. The pound was back above $1.35, while the dollar index was down 0.3% near the lows of April 2018.
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NEW YORK (Reuters) - The dollar pared losses on Tuesday after earlier reaching a more than two-year low against the euro, but remained lower on the day as investors weighed whether an increase in U.S. fiscal stimulus is likely.
FILE PHOTO: A picture illustration shows U.S. 100 dollar bank notes taken in Tokyo August 2, 2011. REUTERS/Yuriko Nakao
U.S. Senate Majority Leader Mitch McConnell on Tuesday blocked immediate consideration of a measure to increase COVID-19 relief payments to $2,000. He suggested the Senate would at least examine the issue.
“This just really delays the inevitable,” said Edward Moya, senior market analyst at OANDA in New York.