NEW YORK: Risk sentiment revived in currency markets on Wednesday as progress toward a Covid-19 vaccine helped equities rebound and commodity currencies strengthen, pushing the dollar to a one-month low.
The dollar index fell below 96 for the first time since June, dropping to a one-month low of 95.770. It was last trading down 0.20% at 95.960.
The US company Moderna has produced an experimental Covid-19 vaccine that provoked immune responses in all 45 volunteers, sparking a risk-on mood.
But there was still some cause for caution, with worsening US-China tensions and fears about the economic impact of a second wave of coronavirus in the United States.
Among the riskier commodity-linked currencies, the Canadian dollar was 0.62% stronger; the Australian dollar was up 0.60% and the New Zealand dollar was up 0.52%.
The euro extended overnight gains to a four-month high of $1.145 versus the dollar, close to the euro-dollar's peak of $1.150 in early March. It was last up 0.18% at $1.142.
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