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U.S. dollar trading is in a slump after Trump passed the pandemic rescue plan



TOKYO (Reuters)-On Monday, President Donald Trump slackens by threatening to stop the COVID-19 aid bill in preventing weak transactions, while many investors are on vacation, and the U.S. dollar is largely absent shake.

File picture: The British pound and dollar bills can be seen in this picture taken on January 6, 2020.REUTERS/Dado Ruvic/Illustration

Last week, Britain reached an agreement on a narrow Brexit trade agreement that does not include the British financial industry, and the pound was hovering below a 2-1

/2-year high during the Asian session.

After three consecutive days of decline, the US dollar index barely changed, at 90.151.

The British pound rose 0.2% to US$1.3565 against the US dollar, rebounding slightly to US$1.3625 at the beginning of this month for the first time since May 2018.

Trump signed a US$2.3 trillion pandemic aid and spending plan, shutting down part of the federal government from Tuesday, thereby legalizing it.

Earlier, he had secretly tweeted: “Good news about the Covid Relief Act. Information that needs attention!” He had previously requested that the cost of stimulus checks for struggling Americans be increased from $600 to $2,000.

The euro was little changed against the dollar, at $1.2216, close to the 2 1/2-year high of $1.2273 reached this month.

Analysts said that although the Brexit agreement last week comforted investors, the crude nature of the agreement has made the distance between the United Kingdom and the EU farther and farther, indicating that the discounts that have plagued British assets since 2016 will not Disappeared soon.

Brussels has not yet decided whether to allow Britain to enter the EU’s financial markets.

Mitsuo Imaizumi, chief foreign exchange strategist at Daiwa Securities in Tokyo, predicts that the pound and euro will fall against the dollar, reaching $1.30 and $1.15 respectively by the end of summer.

He said: “Regardless of the Brexit agreement, the cable will go bankrupt.”

“This is a rumor, a fact.”

The Australian dollar rose slightly to 76.082 US cents, close to the 2 1/2-year high of 76.390 touched this month.

After the People’s Bank of China raised official guidance to the highest level in 30 months, the yuan rose slightly.

The offshore RMB exchange rate against the US dollar rose 0.1% to 6.5200, while the onshore RMB exchange rate against the US dollar was 6.5296.

The dollar fell slightly against the yen to 103.455 yen.

A summary of opinions issued at the December interest rate review meeting on Monday showed how far the Japanese central government’s policymakers should go in reviewing yield curve control, and some have called for a comprehensive review of the framework.

Reporting by Kevin Buckland; Editing by Stephen Coates


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