After trading weaker for the past few sessions, the US dollar reversed its losses and climbed higher against riskier currencies after the Fed’s latest round of stimulus efforts succeeded in improving the market sentiment. At the time of writing, the US dollar index is trading around 101.54.

The US dollar also received some support over expectations that the US Congress could soon sign off on its massive fiscal stimulus package later today and help prop up the US economy. Earlier this week, the Fed unveiled more stimulus measures including unlimited QE and opening of discount dollar funding lines to other central banks.

Global financial markets had a bit of a delayed reaction to the news, with the sentiment seen improving over the previous session, a day after the announcement. The safe haven appeal of the US dollar is back in focus over market expectations for the US economy to receive more protection from these latest measures.

However, volatility in markets continues to remain high as the number of coronavirus cases keep rising despite several countries enforcing lockdown measures. The situation remains just as tense in the US as in the rest of the world after the WHO cautioned that New York could turn into the next epicenter for the pandemic.