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Dollar Snaps 3Day Rising Streak on Stimulus, Vaccine Bets

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The U.S. dollar fell broadly against its peers on Wednesday, snapping a threeday rising streak, as signs of progress in tackling the COVID19 pandemic boosted risk appetite with the Chinese yuan climbing to its highest level in 212 years.

With U.S. coronavirus cases crossing the 15 million mark on Tuesday, regulators moved a step closer to approving a COVID19 vaccine while Britain started inoculating people on Tuesday.

Riskier currencies including the Australian dollar led gains against the struggling greenback in early London trading with U.S. stimulus plans boosting stock markets to record highs.

Investors are also tracking negotiations over U.S. coronavirus aid, with the Trump administration proposing a 916 billion package on Tuesday after congressional Democrats rejected a slimmer plan.

Elsa Lignos, global head of FX strategy at RBC Capital Markets, wrote in a daily note that markets seen comfortable with the idea that eventually something will get done.

Against a basket of its rivals, the greenback fell 0.2 to 90.70, snapping a threeday rising streak.

It weakened 0.2 against the euro to 1.2126 and is tracking toward an annual loss of 8 against the common currency, its largest since 2017, as economic activity data suggests Europe outperforming the United States in recent weeks.

The dollar dropped to 6.5198 yuan in onshore trading, its lowest since June 2018, putting the yuan up by more than 10 from its May lows, boosted by the softer dollar and steady inflows…

Wall St Closes Higher on Vaccine Lift

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