NEW YORK: The dollar fell on Tuesday to its lowest in 2-1/2 years, as investor appetite for risk increased on expectations of a solid global recovery and further monetary and fiscal stimulus from the United States.

The greenback extended losses after news of proposed Covid relief as well as reports that US Treasury Secretary Steve Mnuchin and House of Representatives Speaker Nancy Pelosi were due to speak at 1 p.m. EST about a stimulus package.

The proposed relief bill was $908 billion and would fund measures through March 31, including $228 billion in additional paycheck protection program funds for hotels, restaurants and other small businesses. Currencies that trade higher in times of risk appetite such as the euro, sterling, as well as the Australian, New Zealand, and Canadian dollars all rose against the greenback.

The euro was near a three-month high, while the New Zealand dollar rose to its highest in more than two years. Bitcoin was also on a tear, hitting a record high just under $20,000. The virtual currency was last down 1.9% t $19,320.

In mid-morning trading, the dollar index fell 0.6% to 91.428, hitting a more than two-year low of 91.405. The euro hit a 2-1/2-year high vs dollar above $1.20 and was last 0.8% at $1.2029. The New Zealand dollar hit its highest since June 2018 and was last up 0.7% at US$0.7054.