Dollar extends rebound as traders eye U.S. stimulus

Dollar extends rebound as traders eye U.S. stimulus

The dollar rose from near-three-year lows against its peers on Thursday, boosted by higher U.S. yields as President-elect Joe Biden plans an outline for massive stimulus aid.

The dollar index held onto gains in Asian trading as investors eased on bearish bets. The dollar rose in four of the last five sessions as the prospect of additional stimulus weighed on government bonds.

The dollar index rose 0.1% to 90.431 following a 0.3% gain overnight. It dropped to as low as 89.206 in early January, its lowest level since March 2018.

Analysts say that the dollar’s bounce is only temporary, as more U.S. stimulus will likely boost risk sentiment. 

The euro dipped 0.1% to $1.21405 after falling 0.4% on Wednesday. The dollar was up 0.2% to 104.075 against the Japanese yen. 

Risk disclaimer "PROMETHEUS LTD – Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Republic of the Marshall Islands MH96960 is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0155 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of PROMETHEUS LTD and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or PROMETHEUS LTD." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue

Help with deposit?