• The Financial District

U.S. DOLLAR SINKS TO 2-YEAR LOW

The dollar fell to a more than two-year low on Monday and is set to log its largest monthly fall since July, as a combination of vaccine optimism and bets on more monetary easing in the United States drives investors out of the world’s reserve currency, Tom Westbrook reported in Sydney for Reuters.

Against a basket of currencies, the greenback slipped 0.1% to 91.707, its lowest since April 2018. The risk-sensitive New Zealand dollar hit a two-and-a-half year high and is headed for its best monthly percentage gain in seven years.


“The themes remain familiar: broad dollar weakness amid improving risk appetite,” ANZ Bank analysts said in a note. “This sentiment is likely to continue into December and the (U.S. Federal Reserve) meeting, at which some further action is likely, given the near-term virus risks in the United States.”


The euro and Australian dollar each rose slightly to three-month peaks. The Aussie is up more than 5% for the month, the kiwi 6.4% and the euro 2.7%. Sterling stood at $1.3325, having climbed steadily this month to its highest since September, as investors wagered a Brexit deal would be brokered even as the deadline for talks loomed ever larger.


The dollar index is down some 2.4% for November as promising trial results for three major vaccine candidates excited investors about an eventual end to the coronavirus pandemic. It is nearly 11% below a March peak of 102.990.


Register for Newsletter

  • LinkedIn
  • Instagram
  • YouTube

WHERE BUSINESS CLICKS

@2020 by The Financial District