NEW YORK: The dollar index retreated on Wednesday, a day after notching its biggest daily percentage gain in three weeks and the euro touched a nine-day low, as global equity markets remained cautious in light of waning hopes for a Covid-19 vaccine or US fiscal stimulus.
The dollar jumped on Tuesday on concerns about the length of time before a Covid-19 vaccine would be available and on diminishing expectations a fresh fiscal stimulus package would be agreed upon in the United States before the Nov. 3 presidential election.
The greenback extended declines after data showed the US producer price index for final demand rose 0.4% in September, topping the 0.2% forecast, after advancing 0.3% in August, amid a surge in the cost of hotel and motel accommodation that led to the first year-on-year gain since March.
The dollar index fell 0.232%.
Sterling was last trading at $1.3046, up 0.87% on the day. The euro was up 0.11% to $1.17575.—Reuters