Dollar declines as investors doubt U.S. pandemic recovery

The dollar fell to its lowest in a week on Tuesday as traders began doubting the scale of a recent rally driven by hopes for a quick U.S. pandemic recovery.

The dollar index fell 0.2% to 90.75 in Asian session, and slid to 90.963 for the first time since February. 

The dollar has been in retreat since Friday when weak jobs data halted a two-week rally that lifted it to a more than two-month high of 91.6.

The greenback was boosted by a faster U.S. vaccine rollout compared to other countries and as Democrats aimed to fast-track Biden’s $1.9 trillion COVID-19 stimulus aid.

The euro gained 0.2% to 1.20775 against the dollar on Tuesday, up from a two-month low hit on Friday.

The pound climbed to $1.3784 in Asian trade and last stood at $1.3774. The dollar fell 0.3% to 104.925 per yen.

The Aussie rose 0.3% to 77.252 U.S. cents, while the kiwi was up 0.4% to 72.47 U.S. cents.