US dollar dips as risk-averse sentiment eases
New York: The US dollar weakened in late trading on Wednesday as safe-haven demand reduced amid momentum in riskier assets. The dollar index, which measures the greenback against six major peers, was down 0.45 per cent at 96.4337.
In late New York trading, the euro rose to $1.1335 from $1.1285 in the previous session, and the British pound increased to $1.2621 from $1.2556 in the previous session. The Australian dollar rose to $0.6980 from $0.6958, Xinhua reported.
The US dollar bought 107.20 Japanese yen, lower than 107.51 Japanese yen of the previous session. The US dollar fell to 0.9379 Swiss franc from 0.9420 Swiss franc, and it fell to 1.3500 Canadian dollars from 1.3593 Canadian dollars.
While the US currency, viewed as a safe haven, sank on Wednesday, equities rallied with the Dow up more than 100 points.
“On the whole the impression remains that the economy has recovered more quickly than expected in the majority of countries following the first easing of lockdown measures,” Thu Lan Nguyen, analyst at Commerzbank Research, said in a note on Wednesday.
The analyst said that volatility would remain on the currency market as “there are strong fears that the continued spread of the virus might quickly stifle this recovery again,” which in turn would strengthen the US dollar due to its status as a safe haven.