Dollar stays weak, stocks climb as investors await U.S. stimulus

The dollar remained weak while most currencies gained on Thursday as the patchy U.S. economic data was perceived by markets as a precursor to more stimulus measures and the brinkmanship on Capitol Hill an indicator that a new U.S. coronavirus stimulus aid is close.

MSCI’s broadest index of Asia-Pacific shares outside Japan surged 0.3% to a new six-and-a-half-month high.

Japan’s Nikkei index steadied and Asian currencies rallied. The Aussie climbed 72 cents on the dollar, while both the Korean won and the Malaysian ringgit hit their strongest levels since March.

The U.S. Congress’ top Democrats and White House officials stood firm on their stances on the upcoming coronavirus relief aid, with few hints of compromise between the two sides. Federal Reserve policymakers also advocated for additional aid.

The 10-year U.S. government debt climbed 3 basis points and steadied at 0.5445% on Thursday. The Nasdaq hit a new record peak, while the S&P 500 gained 0.6%. Oil prices also climbed, while gold fell back to a record high hit overnight.

The pound firmed 0.1% to $1.3127, while most majors steadied with the euro at $1.1871 and the yen at $105.55.