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US Dollar Eases After Fed’s Latest Stimulus

Early on Friday, the US dollar trades on the backfoot after the Fed announced more stimulus measures to support small businesses affected by the coronavirus pandemic. At the time of writing, the US dollar index DXY is trading around 99.46.

The US dollar eased lower after the Fed announced $2.3 trillion worth of financial support to local governments and small and medium sized businesses who are at the forefront of the fight against coronavirus. This latest backstop move should cushion the US economy against the impact of the pandemic.

The safe haven appeal of the US dollar also diminished slightly over hopes that the rise in the number of infections is slowing down around the world. This has helped boost the risk sentiment in global markets, sending investors towards other instruments like commodity currencies instead.

However, there is still considerable anxiety among traders about the extent of economic damage the pandemic has caused worldwide. In addition, markets remain worried about the possibility of a resurgence of cases even as the death toll continues to climb higher.

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Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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