US Dollar's Safe Haven Appeal Strained as Trump Gets Discharged From Hospital

US Dollar’s Safe Haven Appeal Strained as Trump Gets Discharged From Hospital

Posted Tuesday, October 6, 2020 by
Arslan Butt • 1 min read

On Tuesday, the US dollar is trading somewhat subdued against its riskier peers amid rising hopes for additional stimulus measures to be finalized soon. At the time of writing, the US dollar index DXY is trading around 93.39.

Traders also turned their attention away from the safety of the dollar and towards risk assets after President Trump returned to the White House after being discharged from the hospital where he was undergoing treatment after testing positive for coronavirus. This has caused the dollar index to drop to a two-week low against other major currencies.

Discussions between House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin are expected to continue later today as they try to pass the bill through ahead of the presidential election. There are hopes that the Trump administration could unveil more financial aid, but progress has been hampered as key policymakers are down with COVID-19.

In the coming sessions, moves in the US dollar are likely to be driven by developments surrounding the coronavirus relief package as well as updates on Trump’s health condition. The rollout of additional stimulus measures to prop up the economy is expected to weaken the reserve currency.

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