TOKYO (Reuters) – The dollar went down near a 2-1 / 2-year low on Tuesday as investors were urged to take more risk as U.S. lawmakers pushed ahead with a relief package Improved COVID-19.
The House of Representatives voted Monday to increase incentive payments to certified Americans to $ 2,000 from $ 600, taking the step forward to the Senate for a vote.
Last week’s Brexit agreement, while bare bones, also supported the outlook for global growth, raising Asian stocks on Tuesday after Wall Street’s gains.
“Hope is plentiful, and it usually comes from equity markets,” said Bart Wakabayashi, manager of the Tokyo Branch of the State Street Bank and Trust.
“The dollar is very heavy, and that will continue into next year.”
The dollar index declined 0.1% to 90.125 in thin holiday trading, approaching the 89.723 level reached on December 17 for the first time since April 2018.
Short positions on the dollar in the week of December 21 ended at $ 26.6 billion, the highest level in three months, according to Reuters calculations based on data released by the Commodity Futures Trading Commission on Monday.
The euro rose 0.2% to $ 1.22375 in the Asian session, rising close to the 2-1 / 2-year level of 1.22735 that was rubbed earlier this month.
The dollar bought 103.695 yen, did not change much against other safe currencies.
Sterling rose 0.2% to $ 1.3484 after a two-day decline. It was as high as $ 1.3625 this month, a level not seen since May 2018, but investors have taken profits after last week’s confirmation of a Brexit trade deal.
While the agreement came as a relief, it leaves Britain far more detached from the EU, analysts say.
“People are still trying to figure out what this Brexit deal means,” stressed the pound, said Wakabayashi at State Street.
“Nothing has been agreed about financial markets, which is a huge negative for the UK.”
The Australian dollar rose 0.2% to 75.927 U.S. cents, while its New Zealand producer rose 0.3% to 71.19 U.S. cents.
The Chinese yuan rose 0.2% to 6.5192 per dollar in the offshore market. He changed hands ashore at 6.5310 per dollar.
Bitcoin slipped 2.4% to $ 26,367, continuing to pull back from the high of $ 28,377.94 set on Sunday.
Reciting with Kevin Buckland; Edited by Sam Holmes & Simon Cameron-Moore