Dollar rises as investors wait for Biden’s “trillions” in US stimulus plans By

© Reuters.

By Gina Lee – The dollar rose Thursday morning in Asia, continuing a rally from nearly three-year lows against major pairs as investors await the plans of President-elect Joe Biden of the new stimulus measures. The one that tracks the dollar against a basket of other currencies was up 0.04% to 90.373 at 11:11 pm ET (4:11 am GMT). The index changed little on Thursday after adding 0.3% during the previous session. It fell to a low of 89,206 for the first time since March 2018 on January 6. The pair was up 0.17% to 104.03. The dollar was little changed against the yen, after a previous 0.1% rise. The pair was up 0.19% to 0.7747 and the pair was up 0.24% to 0.7195. The pair was up 0.05% at 6.4712. Chinese trade data released earlier in the day outperformed, with year-on-year growth of 18.1%, year-on-year growth of 6.5% and an increase of $ 78.17 billion in December. The pair was up 0.03% to 1.3640. Biden is scheduled to reveal plans for “trillions” of dollars in new COVID-19 stimulus measures later in the day. Investors’ expectation that the measures will lead to a faster economic recovery raised yields on US Treasuries, which in turn gave the dollar a boost. Investors continued to reduce the bearish bets, which also helped the greenback to sustain the gains made on Wednesday. The prospect of more stimulus measures hit US government bonds, and benchmark Treasury yields topped 1% for the first time since March 2020, which in turn led the dollar to gains. ee in four of the last five trading sessions. it maintained its 10% gain from Wednesday, rebounding after a nearly $ 12,000 drop from its all-time high of $ 42,000 seen during the previous week. The digital currency was up 0.6% to $ 37,655 on Thursday, up from the low of $ 30,261.13 seen on January 11. However, some investors were cautious, warning that the dollar’s rebound could be temporary, as the build-up of bearish positions is unwinding. FOREX speculators have been net short on the dollar since March 2020, as a surge in investor appetite for riskier assets drove them away from the dollar. Greater stimulus will also support long-term risk sentiment, further reducing demand for the safe haven dollar. “I think risk asset positioning is becoming a concern, so there could be a contraction in the dollar in the short term,” Bank of America (NYSE 🙂 Japan’s chief currency strategist told Reuters. Shusuke Yamada. “I am focusing on the gradual weakness of the dollar in 2021,” added Yamada.

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