NEW YORK: The dollar tumbled to an almost two-year low against the euro on Monday on concerns about a growing number of coronavirus cases in the United States, and before the Federal Reserve this week is expected to confirm its commitment to rock bottom rates.
"It seems like we're seeing the dollar lose its crown," said Edward Moya, senior market analyst at OANDA in New York. "There are high expectations you're going to see the Fed continue to signal that they're prepared to do more at a longer run, and the US economic recovery is not going to be anywhere near as smooth as what is unfolding in Europe."
The Fed is expected to reiterate that it will keep rates near zero for years to come when it concludes its two-day meeting on Wednesday.
The euro was last up 0.87% at $1.1755, after earlier reaching $1.1763, the highest since September 2018.
The single currency may extend gains to $1.20 if the region is able to contain any resurgences of the coronavirus, Moya said.
The dollar index fell 0.76% to 93.64. It earlier dipped to 93.60, the lowest since June 2018. The dollar fell 0.82% to 105.25 yen, the weakest since March 16.
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