Dollar holds gains as Trump calls off U.S. stimulus talks

The dollar held its ground against most peers on Wednesday after U.S. President Donald Trump cancelled talks on a stimulus package with Democrat lawmakers, prompting a safe-haven bid.

Trump’s abrupt decision to cancel stimulus talks several weeks before the presidential election increases risks for the shaky U.S. economy.

Against the euro, the dollar stood at $1.1729, holding onto a .04% gain in the last session.

The pound traded at $1.2881 after falling 0.86% on Tuesday as optimism about Brexit talks failed to support the pound from the dollar’s rise.

The dollar was quoted at 0.9185 against the Swiss franc after gaining 0.3% on Tuesday.

Federal Reserve Chair Jerome Powell warned that the U.S. economy could slip further if the coronavirus outbreak is not contained. Powell also called for additional economic assistance.

Still, the risk aversion did not advance the dollar against the yen, trading at 105.67.

The Aussie rose to $0.7118 in Asian session after sliding over 1% on Tuesday. The kiwi bought $0.6588, close to a one-week low.