US Dollar Dips After Strong Start to Trading Session
Arslan Butt • 1 min read
After starting the early Asian session on a bullish note, the US dollar has dipped against some of its major peers, including the Japanese yen and the Euro even as the coronavirus pandemic and its economic impact remain in focus. At the time of writing, the US dollar index is trading around 100.79.
The Japanese yen registered some gains earlier today after PM Shinzo Abe unveiled more stimulus measures to support the economy amid the escalating crisis. However, gains in the currency are expected to come under pressure as Abe declared a state of emergency across several parts of the country amid a rise in the number of cases.
Meanwhile, markets received some relief after the number of infections and death toll from coronavirus edged lower, indicating signs of the situation moving towards getting better. This sentiment also helped diminish some of the safe haven appeal of the US dollar.
The US dollar also weakened after US stock futures reversed their gains and started dipping lower. Stocks had risen over emerging signs of plateauing in the number of infections in the US, especially in the worst affected regions of New Jersey and New York.