US dollar dithers in thin trade as Trump passes pandemic aid package

There's little movement with the US dollar as it shrugs off news of US President Donald Trump relenting on a threat to block a Covid-19 aid bill in thin trading. — AFP pic
There's little movement with the US dollar as it shrugs off news of US President Donald Trump relenting on a threat to block a Covid-19 aid bill in thin trading. — AFP pic

Follow us on Instagram and subscribe to our Telegram channel for the latest updates.


TOKYO, Dec 28 — The US dollar shrugged off news of President Trump relenting on a threat to block a Covid-19 aid bill in thin trading today with many investors on holiday.

The pound hovered below a 2½-year high in the Asian session following the agreement last week of a narrow Brexit trade deal that does not cover Britain's financial sector.

The US dollar index was little changed at 90.224, following a three-day slide.

Sterling added 0.1 per cent to US$1.3544, treading water below the 2½-year high of US$1.3625 hit earlier this month.

Trump signed into law the US$2.3 trillion (RM9.33 trillion) pandemic aid and spending package, officials said last night, averting a partial federal government shutdown.

Earlier he had cryptically tweeted, “Good news on Covid Relief Bill. Information to follow!” He had previously demanded an increase in stimulus cheques for struggling Americans to US$2,000 from US$600.

The euro slipped 0.1 per cent to US$1.2199, further retreating from the 2½-year high of US$1.2273 touched this month.

While last week's Brexit deal came as a relief to investors, the bare-bones nature of the pact leaves Britain far more detached from the EU, analysts say, suggesting the discount that has dogged UK assets since 2016 will not vanish soon.

Brussels has made no decision yet on whether to grant Britain access to the bloc's financial market.

Mitsuo Imaizumi, chief FX strategist at Daiwa Securities in Tokyo, expects the British pound and euro to decline against the US dollar, reaching US$1.30 and US$1.15 respectively by the end of the summer.

“Regardless of the Brexit deal, cable will be down,” he said. “It’s buy the rumour, sell the fact.”

The US dollar was little changed at 103.63 yen.

Policymakers at Japan's central were divided on how far they should go in examining yield curve control with some calling for a comprehensive review of the framework, a summary of opinions voiced at the December rate review showed today. — Reuters

You May Also Like

Related Articles