NEW YORK: The US dollar slipped against basket of currencies on Wednesday as investors' appetite for risk improved on strong corporate earnings and expectations of more stimulus measures for the pandemic-ravaged global economy.
US and European investors piled into stocks on Wednesday as companies in both regions posted a batch of positive earnings reports.
The dollar, a safe-haven currency, typically weakens when investors grow more comfortable holding riskier assets.
On Wednesday, the US Dollar Currency Index, which measures the greenback's strength against six major currencies, was 0.536% lower at 92.652, just shy of a more than two year low of 92.593 touched last week.
"Clearly we have seen risk appetite rebound on global markets and sort of a return of the theme of a US underperformance relative to world counterparts," said Karl Schamotta, chief market strategist at Cambridge Global Payments in Toronto.
The dollar fell further on Wednesday after the ADP National Employment Report, which showed US private payrolls growth slowed sharply in July, suggesting a loss of momentum in the labor market.
Investors also are watching negotiations between the White House and congressional Democrats trying to reach a deal on a relief package by the end of this week. Treasury Secretary Steven Mnuchin said progress had been made.
The Australian dollar, which tends to rise when risk sentiment improves, was last up 0.88% at $0.7223 against the US dollar.
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