BREAKING: Dollar Sustains Gains as Investors Adjust Vaccine Expectations

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BREAKING: Dollar Sustains Gains as Investors Adjust Vaccine Expectations

SYDNEY (Reuters) - The dollar held broad gains on Thursday as investors adjusted some of their expectations about a COVID-19 vaccine, which tempered a recent rally in risk assets but kept enough confidence to support the greenback against safe-havens.

The dollar index sat just below a one-week high hit overnight and the dollar stood close to a one-week top against the Swiss franc and a three-week peak against the yen.

The yen, a popular vehicle for bets against the dollar, is now at 105.41 per dollar, some 2% below an eight-month high it hit against the greenback last week, when Joe Biden’s lead in the U.S. election spurred a wave of dollar selling.

The euro slipped 0.3% overnight after the European Central Bank said it would focus on bond buying and cheap loans to boost pandemic-wrecked economies, while the British pound was lower as Brexit trade talks dragged on.

Only in the Antipodes was the dollar weaker or steady, after the kiwi leapt following an upward adjustment in the Reserve Bank of New Zealand’s “unconstrained” cash rate projection, which prompted traders to trim expectations for negative rates.

Original Article: 

https://www.reuters.com/articl...

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