NEW YORK: The US dollar fell on Tuesday as risk appetite improved after US President Donald Trump accepted the transition to a Joe Biden presidency and on optimism that Covid-19 vaccines are close to being rolled out. The dollar index pared much of its earlier losses, however, and held above a key technical support. Analysts said that the greenback may need a new catalyst to push it significantly lower after dropping to near three-month lows this week.
The dollar index was last down 0.09% at 92.415, having reached a three-month low of 92.013 on Monday. The index dropped slightly after data showed US consumer confidence fell more than expected in November, with encouraging vaccine news countered by a widespread surge in new Covid-19 infections and business restrictions.
The euro gained 0.15% to $1.1859 and the dollar gained 0.1% to 104.71 against the Japanese yen. The Australian dollar, which is highly correlated to strong risk appetite, gained 0.53% to $0.7324 after touching an almost three-month high of $0.7367. Bitcoin gained more than 5% to $19,343 and is approaching its record high of $19,666 from December 2017.
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