Dollar plunges as investors turn to Asia currencies amid recovery hopes

The dollar dropped on most Asian currencies on Wednesday as investors gained appetite for risky assets amid government stimulus and economic recovery.

The Australian dollar hit a five-month high of 0.6982 on the dollar. The commodity currency rose as investors favored the bullish sentiment amid easing lockdowns and rising commodity prices.

The New Zealand dollar traded at $0.6430, its highest since early March.

The dollar fell against the pound, the Swiss franc, and the yen as anti-racism protests in many U.S. cities weighed on the market.

The dollar fell to 108.47 against the yen and stood at 0.9613 on the Swiss franc.

The pound hit a one-month high of 1.2615 on the dollar. 

In onshore trade, the Chinese yuan stood at 7.1068 against the dollar after its services sector reported growth for the first time since January.

In Washington, President Donald Trump has ordered the use of military force to stop the spreading protests against police brutality and racism. The Department of Defense has deployed 1,600 army troops into Washington, D.C. 

However, U.S. stocks continued to rally, confusing currency traders about the market’s direction.

The euro traded at $1.1186 in Asian trade, its highest since mid-March.