Dollar, yen falls as U.S. stimulus hopes lift sentiment

08.10.2020 - Petr Mazaylo
Dollar, yen falls as U.S. stimulus hopes lift sentiment

The dollar and the safe-haven yen fell on Thursday after hopes for a U.S. stimulus improved sentiment. Meanwhile, the possibility of negative rates weighed on the kiwi.

The Japanese yen plunged to a three-week low of 106.11. The dollar fell against other currencies except the kiwi.

The euro rose to $1.1770, while the risk-sensitive Aussie held onto its Wednesday gains. The kiwi fell 0.5% after the Reserve Bank of New Zealand hinted at the prospect of negative rates. It stood at $0.6570.

The upbeat mood in equity markets was also supported by signs of additional easing from the U.S. Federal Reserve.

Meanwhile, the U.S. vice presidential debate did not affect currency markets, but strengthened investors’ expectations on the policy settings the winning presidential candidate would hold. 

The yuan last stood at 6.7898 in onshore trade and at 6.7389 in offshore. The pound steadied at $1.2928.

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