Dollar falls on worries about second coronavirus wave, Biden transition

The dollar fell on Tuesday as a reimposition of coronavirus restrictions in several U.S. states and concerns about a smooth transition for President-elect Joe Biden offset optimism about a COVID-19 vaccine.

The pound rose on news that the UK and the EU could reach a post-Brexit trade deal by next week. Moderna became the second U.S. pharmaceutical company this week to report good results from trials of a COVID-19 vaccine.

The dollar stood at 1.1861 on the euro, on track for a fourth consecutive day of declines.

The pound climbed to $1.3220 and rose to 89.73 pence per euro. Against the Japanese yen, the dollar was steady at 104.47.

Dollar investors are looking forward to the release of data on U.S. retail sales and industrial output later on Tuesday to assess the economic recovery.

There are worries about Biden’s plans to control the coronavirus outbreak and support the economy as the Trump administration refuses to cooperate with Biden’s transition team.

Elsewhere, the Aussie held onto overnight gains against the dollar, while the kiwi stood near its strongest level in over a year. The onshore yuan is also in focus as traders monitor its recent highs.