NEW YORK: The US dollar was mostly lower on Thursday, while sterling gained after Britain and the European Union struck a post-Brexit trade deal, boosting the market’s appetite for risk and raising hopes the United Kingdom can avoid a turbulent economic departure at the end of the year.
In mid-morning trading, the dollar index was slightly lower at 90.256. So far this year, the dollar has fallen 6.5%, its worst yearly performance since 2017.
Currency markets also seemed to have shrugged off President Donald Trump’s criticism of the fiscal relief package earlier approved in Congress, which could put the bill in limbo.
Republicans and Democrats in the US House of Representatives on Thursday blocked attempts to alter a $2.3 trillion coronavirus aid and government spending package, leaving its status in doubt after Trump demanded extensive changes to the legislation.
Sterling, meanwhile, extended gains and rose as high as $1.3620. It was last up 0.7% at $1.3591, with potential to rise to a 2-1/2 year high above $1.3625.
The pound also rose to a three-week high against the euro at 89.54 pence. and was last up 0.7% at 89.72 pence.—Reuters