Dollar drops on improving risk sentiment

The dollar dropped to a near three-year low against the Aussie and the Pound as progress in containing COVID-19 cases lifted risk sentiment.

The Aussie reached $0.7892, its strongest since March 2018, while the Kiwi hit $0.7315, its highest level since April 2018.

Vaccine rollouts will reduce risks to the Australian economy over the year, experts said. Australia began its mass COVID-19 vaccination on Monday as the country reported no local transmission for a third consecutive day.

The Euro last stood at 1.2124 against the dollar, while the Pound traded at $1.4030. Against the Japanese yen, the Greenback steadied at 105.45.

Long-term Treasury yields have been surging recently, and the United States has improved its response to the virus, which will likely boost the dollar.