The American Dollar fell against a basket of major currencies such as Euro, Swiss Franc and Pound Sterling on Thursday, mostly indented by an impasse in the US Congress over a second round of pandemic stimulus bill to revive the United States’ ailing economy, while a deteriorating trade relationship with Beijing had also prompted the market participants to sway away from the world’s most traded currency.
Nonetheless, despite trading broadly lower throughout the session, US Dollar had pared some of its footings following a late-afternoon sell-off in the Wall Street, though the American currency, which had curbed out more than 10 per cent of its valuation from the peak of March over the recent weeks, had been harbouring over treacherous waters with possibilities of further downside momentum in a near-term outlook.
However, as investors still remain focused on the pandemic stimulus bill, US Dollar had found a fragile support at its two-year lows.
US Dollar weakness persists as US Congressional debates spur up
In factuality, Thursday’s tottering of the greenback was almost entirely galvanized by a growing uproar in the US Congress over financing for the US Postal Service, which would likely to play a crucial role in the upcoming November 3 US Presidential election, however, the US President Donald Trump had ditched out probabilities of any additional funding to facilitate the mail-in voting.
Amid such copious chaos in the US Congress, five days had passed away since the negotiations over a pandemic relief bill had broken off, while the bipartisan lawmakers had shown little intent to resume talks over the subject-matter.
Citing statisitcs, on the day’s FX market wind down, the bloc’s common currency euro gained 0.28 per cent to $1.1813 against its American counterpart, while the British currency added 0.27 per cent to $1.3065 and the safe-haven Swiss Franc rose 0.26 per cent to curtain off the day at $0.9093 against the greenback.
However, the US Dollar Index (DXY) measured against a basket of six major currencies on an average fell by 0.23 per cent to 93.42. Meanwhile, addressing the impacts of a deadlock over the pandemic stimulus bill, an executive director at currency advisory firm Klarity FX in San Francisco, Amo Sahota said on the day’s FX market closure, “The stalemate over the stimulus package is troubling.
Sticking more band-aid over it, which is what the administration is trying to do right now, is not enduring. ”