Dollar falls as U.S. fiscal stimulus bout in focus

The dollar fell against its peers in early Asian trade as the debate between the Democrats and Republicans over the U.S. economic stimulus measures weighed on the market. 

The euro rose to its strongest level in over a year after EU leaders agreed on a massive stimulus plan to support the bloc’s economy from the impact of the pandemic.

The market maintained a strong risk appetite this week as progress in the early stage trials of COVID-19 vaccines reduced the dollar’s safe-haven bid.

The pound stood at $1.2727 as the dollar neared a six-week low. The U.S. currency slid to 0.9323 on the Swiss franc and steadied at 106.79 per yen.

The euro traded at 1.1539 on the dollar and stood at 90.67 pence per pound.

Investors in the dollar are awaiting the data on U.S. existing home sales due on Wednesday and the weekly unemployment claims on Thursday to assess the sentiment for the currency. However, the focus will likely be on the U.S. policymakers’ response to the public health crisis.

In onshore trade, the yuan climbed to 6.0649 on the dollar, its strongest since March 11. 

The Aussie rose to $0.7144, while the kiwi stood at $0.6649.