US Dollar Dips on Equities Rally, Trump Tweet in Focus
US dollar fell slightly from Tuesday high as investors focus moved towards risker currencies and assets after Donald Trump announced that new aid is coming for the airline industry. Wall Street posted big gains on Wednesday and extended the upside into Thursday trading.
“The House & Senate should IMMEDIATELY Approve $25 Billion Dollars for Airline Payroll Support, & 135 Billion Dollars for Paycheck Protection Program for Small Business. Both of these will be fully paid for with unused funds from the Cares Act. Have this money. I will sign it now!” Trump said.
The president tweeted that he plans to offer $1200 to every American. “If I am sent a Stand-Alone Bill for Stimulus Checks ($1,200), they will go out to our great people IMMEDIATELY. I am ready to sign right now. Are you listening Nancy?” Trump tweeted Tuesday night.
The USD index, which compares the performance of the greenback against the six major currencies, dipped to 93.50 level after soaring close to 94 on Tuesday.
The Federal Reserve’s Chairman has repeatedly asked the government to introduce more stimulus packages to support small businesses and specific industries that are hit harder by the pandemic.
The economic growth concerns could negatively impact the performance of equities and add to the US dollar value. The price of yellow metal jumped almost 24% since the beginning of this year while the US dollar index plummeted close to 3.53%.
The euro continues trading around $1.17 level against the US dollar. The market investors have aggressively been looking towards the European Central Bank minutes.
The bank has been showing concerns over the robust increase in the common currency since the beginning of this year. Stronger euro could negatively impact European exports. The British Pound remains strong against the US dollar as market sentiments are high about the Brexit talks breakthrough.