Dollar Lower As House Boosts Stimulus Checks In Aid Package
December 28 2020 - 8:48PM
RTTF2
The U.S. dollar fell against its major counterparts in the Asian
session on Tuesday, as the sentiment lifted up after the U.S. House
of Representatives backed President Donald Trump's push for
increasing the direct payments in the coronavirus relief package
and send the bill to the Senate.
The House voted on Monday to increase the stimulus checks to
$2,000 from $600 as demanded by Trump.
The bill was headed to the Senate, where Republicans are likely
to block the measure due the budget deficit.
But the House voted to override Trump's veto of a $740 billion
defense bill that was approved by Congress earlier this month.
Risk sentiment improved as Trump's signing of the Covid aid
package raised optimism about an economic recovery.
The greenback weakened to 1.3495 versus the pound, from a high
of 1.3439 hit at 5:00 pm ET. The currency is seen finding support
around the 1.37 region.
The greenback reached as low as 0.8865 against the Swiss franc,
setting a 1-week low. On the downside, 0.87 is possibly seen as its
next support level.
The U.S. currency pulled back from its early highs of 1.2206
against the euro and 103.82 against the yen and was trading at
1.2243 and 103.62, respectively. The greenback may test support
around 1.24 against the euro and 100.00 against the yen, if it
drops again.
The greenback edged down to 0.7599 against the aussie, 0.7124
against the kiwi and 1.2820 against the loonie, following its early
highs of 0.7574, 0.7096 and 1.2853, respectively. The currency is
likely to target support around 0.78 against the aussie, 0.73
against the kiwi and 1.26 against the loonie.
Looking ahead, S&P/Case-Shiller home price index for October
is scheduled for release in the New York session.
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