The U.S. dollar remained on the back foot on January 29 as an imptovement in risk appetite sapped for the safest assets.
The U.S. dollar index was slightly changed at 90.566 early in the Asian day. Significantly, it declined by 0.1% overnight.
The American currency is still on track for a 0.4% weekly advance following safety buying at the start of the week amid concerns that President Joe Biden’s fiscal spending package be smaller that the proposed $1.9 trillion.
According to many analysts, the U.S. dollar will return to the downward trend that witnessed it lose approximately 7% of its value last year, as the Federal Reserve maintains its ultra-easy monetary policy.
The risk-sesntivie Australian dollar increased by 0.2% overnight and traded at 76.75 U.S. cents.
Meanwhile, the euro was slightly changed at $1.21175 after increaseing in the previous trading session.
The American currency increased by 0.1% against the yen and traded at 104.335. Significantly, traditional safe-haven currency increased by nearly 0.2% in the previous session.
The Pound reached its highest level against the Greenback since May 2018
The British pound reached its highest level against the greenback since May 2018 on Wednesday. It later hit an eight-month high against the euro. Analysts say that Britain rolling out coronavirus vaccines faster than continental Europe.
Concern about vaccine rollouts globally, and the impact of modifications of the COVID-19, created a cautious tone in markets, and a stronger greenback. It meant that the pound currency eased off these highs on Thursday.
The British pound was up 0.2% against the dollar, at $1.3724, compared with Wednesday’s $1.3759 high. Against the euro, it was up about 0.2% at 88.345 pence, after reaching 88.135 in the previous session.
The world’s largest cryptocurrency, Bitcoin increased by more than 10% and traded at $33,899. The dominant cryptocurrency has been consolidating since hitting a record high of $42,000 earlier this month.