$2 trillion fiscal stimulus drives dollar lower

The dollar slid for the third straight day on Wednesday as the US’ proposed fiscal stimulus package eased markets driven by demand for cash. 

US senate majority leader Mitch McConnell said that the $2 trillion (1.70 trillion pounds) will be voted on Wednesday.

The Australian dollar rose above the 60-cent mark and extended its gains up to 0.6047 against the USD. The pound gained 0.6% to $1.1834, while the New Zealand dollar was up 1%, to $0.5894. The euro climbed 0.3%, at $1.0819. The dollar index eased 0.2%, at 101.43. It was traded at 111.17 against the Japanese yen.

The stimulus package is said to include $150 billion allocated for aiding hospitals and another $150 billion to state and local governments, according to Senate Democrat leader Chuck Shumer. According to sources, $61 billion of the package is allocated for the aviation sector.

Analysts expect that the market won’t ease for demand in dollars until the virus outbreak subsides. The World Health Organization said that the next epicenter of the virus could be New York.

In funding markets, investors and businesses rush for dollars in an attempt to cover liabilities. Chris Weston, head of research at Melbourne brokerage Pepperstone said that the current market appetite is focused on the downside risks.