Dollar falls as virus fears ease expectations

The dollar fell on Thursday following five straight days of decline, while the yen held onto most of its recent gains. Investors worried about increasing COVID-19 deaths and started to bet on additional stimulus aid from the U.S. Federal Reserve.

The dollar index stood at 92.549, falling 0.2% so far in the week. It is just above the two-year low hit in September. 

The safe-haven yen slid to 103.92 against the dollar, but not far from the eight-month high of 103.18 hit two weeks ago.

The kiwi and the krone held onto Wednesday’s gains, while the Aussie softened to $0.7295. A fresh coronavirus outbreak in South Australia prompted new lockdowns.

The United States remains in a recession with Federal Reserve President John Williams reiterating that the central bank would use all its tools to support the economy. 

Meanwhile, hopes for a post-Brexit trade deal supported the pound and kept the euro steady. The pound traded 0.2% lower at $1.3234 and the euro stood at $1.1839.