NEW YORK: The safe-haven US dollar dipped on Monday and riskier currencies outperformed as risk appetite improved on optimism that lawmakers in Washington will reach a deal for new stimulus to blunt the economic impact of the coronavirus.
"There is definitely some more optimism around fiscal stimulus coming down the pike," said Erik Nelson, a macro strategist at Wells Fargo in New York. Failure to reach a deal, however, would likely be positive for the dollar, which on Monday fell 0.41% against a basket of major currencies.
The euro gained 0.57% to $1.1783, the highest since Sept. 21. The Australian dollar rose 0.35% to $0.7187 and the greenback dipped 0.76% to 9.2296 krone. Trump's Covid-19 diagnosis is adding an extra layer of uncertainty to how the US Nov. 3 presidential election will play out, and what it could mean for the greenback. Sterling gained 0.43% to $1.2986.
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