Euro firms on EU recovery fund, yen nears 5-week low

The euro firmed on Wednesday following France and Germany’s proposal for a common fund in Europe’s hardest-hit regions in the crisis, while the yen neared to a five-week low despite risk appetite.

The euro rose 0.15% to 1.0940 against the dollar. It traded at 1.0615 per Swiss franc. It stood at 118.20 on the yen, nearing a five-week high.

Germany and France proposed a 500-billion euro recovery fund to regions and sectors worst affected by the pandemic. This recovery fund will also allow the European Commission to lend on behalf of the European Union.

The proposal could lead the EU closer to fixing the economic balances within the union. However, the proposal could be opposed by wealthy and fiscally conservative nations.

The dollar climbed 0.1% to 107.78 on the yen, nearing a five-week high. The safe-haven yen is almost at a five-week low despite an appetite for risk currencies in the market. 

U.S. stock futures gained 0.7% in Asian trade, recovering some of its losses after news website STAT reported that Moderna Inc’s data on COVID-19 vaccine trials was insufficient. 

The report caused market optimism to die down only a day after the company announced its progress on developing the COVID-19 vaccine.

The dollar index traded at 99.571.

The sterling steadied at $1.2251, while the Australian dollar stood at 0.65385 on the dollar.