Dollar near three-week low as investors pin hopes on U.S. stimulus

The dollar stood at three-week lows on Tuesday as investors pin hopes on a big U.S. stimulus package after the presidential election, boosting risk currencies.

The dollar index stood at 93.036, right above Friday’s near-three-week low of 92.997. The euro bought $1.1841 after gaining 0.6% on Monday.

A Biden win in the U.S. presidency is seen as negative for the dollar due to his pledge to raise corporate tax, which would decrease returns from U.S. investments.

That made the dollar weak against safer currencies such as the Japanese yen and the Swiss franc.

The yen rose to 105.34 on the dollar, while the Swiss franc stood at $0.9102, nearing its highest level in three weeks.

The pound traded over the $1.30 level as hopes for a Brexit deal offset worries about the economic pressure brought about by the reimposed social restrictions. It stood near a two-week high on the euro at 0.9043 per pound.

The Aussie fell 0.4% to $0.7183. In offshore trade, the yuan fell after the People’s Bank of China implemented a measure that curbed the currency’s strength. It traded at 6.7626 against the dollar.