Forex Signals – Dollar loses out on growing optimism about virus vaccine TOKYO (Reuters) – The dollar nursed losses against major currencies on Tuesday after encouraging data from the trial of a vaccine for COVID-19 reduced safe-haven demand for the greenback.
“Volatility is falling for stocks and dollar-funding costs are lower. It’s easy for the dollar to fall and for other currencies to ride the dollar’s losses higher.”
The euro (EUR=EBS) bought $1.0917 in Asia on Tuesday, having gained 0.9% against the greenback in the previous session. The common currency (EURCHF=EBS) traded at 1.0607 Swiss franc after jumping on Monday to the highest in more than two months.
The news also sent Italian government bond yields skidding to their lowest in more than a month.
The pound also benefited from the dollar’s losses and rose to $1.2215.
The dollar was little changed at 107.43 yen. The Australian dollar rose 0.25% to $0.6540.
The Reserve Bank of Australia will release minutes from its most recent monetary policy meeting later on Tuesday, which may help investors determine the chance of further monetary easing.
The New Zealand dollar rose 0.26% to $0.6055 after Reserve Bank of New Zealand Deputy Governor Geoff Bascand told Reuters the central bank will re-evaluate its monetary easing in about three months to determine whether “to do more or take the foot off the pedal a little bit.”
Dollar loses out on growing optimism about virus vaccine