Dollar drowns on stimulus hopes, Trump’s dramatic return into the White House

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Dollar drowns on stimulus hopes, Trump’s dramatic return into the White House

On Monday, the American Dollar had lost its safe-haven bid and commodity-oriented loonies alongside emerging market currencies had staged a maverick rally against the greenback, as the US President Donald Trump makes a histrionic return into the White House late on Monday, while market optimisms over another round of trillion-dollar pandemic stimulus had added to further bullish wings.

In point of fact, equity markets across the globe had surged on Monday that largely coincided with a weaker dollar, while an upsurge in crude oil futures’ prices of as much as 5 per cent led to a torrential gain of commodity-based loonies such as Canadian Dollar and Australian Dollar.

US Dollar falls as Trump stages dramatic entry into the White House

More importantly, an abrupt downturn of American Dollar on Monday’s FX market was almost entirely prodded by a remark from the US President Donald Trump, who earlier in the day had expressed intent to depart hospital care as early as by Monday night.

In factuality, Trump staged a dramatic return into the White House without a mask late on Monday, while top physicians were quoted saying the President had still been infected during a surprise end to his two-day long hospital stay, remarking Trump’s approach towards the pandemic outbreak.

Apart from that, nearly an hour of phone conversation between the US House Speaker Nancy Pelosi and the US Treasury’s Steven Mnuchin on Monday ahead of their stimulus talks on Tuesday, had spurred up appetites for the riskier assets.

Citing statistics, on the day’s FX market closing bell, the US Dollar Index (DXY) measured against a basket of six major currencies fell 0.38 per cent to 93.44, while the bloc’s single currency gained 0.50 per cent to $1.1774, its highest in more than two weeks, against its American counterpart.

Apart from that, the China-trade oriented Australian Dollar added 0.17 per cent to $0.7174 against the greenback, while the American currency fell 0.72 per cent to 9.23 against Norwegian Krona. British pound gained 0.35 per cent to $1.2976.

Meanwhile, citing a cautious optimism towards a fiscal stimulus deal, a senior market analyst at Western Union Business Solutions in Washington, Joe Manimbo said, “I think the market is convinced that sooner or later fiscal stimulus will materialize in the wake of data that continues to show a moderating U.S. economy.