The Canadian dollar rallied along with Norwegian crown

The dollar continued to stay flat on Tuesday against a basket of currencies. It traded at 95.675 at last. However, several other currencies rallied. The Canadian dollar skyrocketed, with the U.S. dollar lower by 0.4% to C$1.3484. The Norwegian crown also surged forward, with the Euro falling by 0.5% against the crown to 10.51 crowns.

Meanwhile, the sterling jumped by 0.4% to $1.2716, its highest since June 11, and 0.3% against the Euro to 90.20 pence.

In Asia, the Japanese yen changed slightly at 107.22 per dollar. The Australian dollar soared by 0.8% to $0.7071, its highest since July 2019. The bullish mood boosted the Aussie.

How did the Euro fare?

The Euro climbed up by 0.2% to $1.1470 in Asian trading, its strongest since March 9. The currency hit its strongest since early March on Tuesday after surging forward on Monday.

European Union countries struck a new deal for a massive stimulus plan to bolster their coronavirus-hit economies. However, the euro’s gains were tempered by prior market expectations that a deal would eventually be agreed upon. The common currency traded higher by 0.1% at $1.1454 at the end of the session.

For the time being, traders couldn’t expect further momentum for the euro from either the fiscal or monetary policy side – stated Commerzbank analyst Esther Reichelt.

She added that it is primarily the recovery of the real economy and the development of coronavirus infections that will determine how the euro will perform going forward. According to Reichelt, $1.14 was a justified price for the currency.

Several analysts remarked that there was little new information in the final deal to push the Euro much higher immediately as the breakdown between grants and loans was already known.

Encouraging results from several COVID-19 vaccine trials also boosted market sentiment. As a result, many currencies topped recent highs against the safe-haven dollar.