The U.S. dollar moved in a tight band on Monday with updates on additional U.S. fiscal stimulus, treasury yields and economic data out of Europe setting the trend.
U.S. lawmakers approved a budget outline that will allow them to muscle President Biden’s $1.9 trillion Covid-19 relief package through in the coming weeks without Republican support.
House Speaker Nancy Pelosi said she believes the final Covid-19 relief legislation could pass Congress before March 15, when special unemployment benefits that were added during the pandemic expire.
The dollar index rose to 91.24 in the European session, gaining against most of its major counterparts, as Treasury yields rose amid rising prospects of addtional stimulus in the U.S.
However, the index retreated in late morning trades, and then stayed in negative territory. It was last seen at 90.97, down 0.08% from previous close.
The Euro was little changed against the dollar, fetching $1.2051 after recovering to $1.2066 from a low of $1.2021. Eurozone investor sentiment index fell unexpectedly to -0.2 in February from +1.3 in the previous month. Economists had forecast the index to rise to 1.9.
The Pound Sterling was flat, fetching $1.3739 a unit, recovering from $1.3681.
Against the Yen, the dollar was weaker. The Japanese currency, which had weakened to 105.67 earlier in the day, firmed up to 105.23 a dollar, gaining about 0.14%. Japan had a current account surplus of 1,165.6 billion yen in December, the Ministry of Finance said. That was up 113.9% on year.
The current conditions index of the Economy Watchers’ Survey, which measures the current situation of the economy, decreased to 31.2 in January from 34.3 in December.
The Aussie was stronger, with the AUD-USD pair quoting at 0.7072 after closing at 0.7678 on Friday.
The Swiss franc is little changed at 0.8989 a dollar. data from the State Secretariat for Economic Affairs showed Switzerland’s jobless rate was stable in January, coming in at a seasonally adjusted 3.5%, same as seen in December. This was in line with economists’ expectation.
On an unadjusted basis, the unemployment rate rose to 3.7% in January from 3.5% in the previous month. Economists had forecast a rate of 3.4%.
Against the Loonie, the dollar weakened to $1.2737 from $1.2756, as crude oil prices moved higher.
The material has been provided by InstaForex Company – www.instaforex.com
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