Dollar dives to 7-week low on US stimulus talks progress
The US dollar fell against a basket of major currencies on Wednesday, to deepen its losses for the fourth straight day, and hit a 7-week low, as demand slowed after progress in political talks for the US second stimulus package.
The dollar index fell 0.4% to the lowest level since September 3 at 93.15 points, after it opened at 93.04 points, and hit an intraday high of 93.07 points.
The index lost 04% yesterday, and posted its third straight daily loss, after positive developments in the talks for the second Covid-19 aid package.
The US House of Representatives spokesman Drew Hamill said on Monday that House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin continued to narrow their differences on the aid package in a telephone conversation.
Hamill added that by the end of Tuesday there will be clarity on whether the aid bill can be passed before the November 3 presidential election.
White House chief of staff Mark Meadows stated that progress was made in the coronavirus stimulus talks, but there's still a need for more negotiations to overcome major differences about a final deal.
President Trump also said on Tuesday that he is willing to accept a large fiscal stimulus bill, despite opposition from his own Republican Party.
Sterling fell on Thursday for another session against dollar away from two-month highs on profit-taking. GBP/USD fell 0.3% to 1.3178, after closing down 0.3% yesterday, the first loss in five days away from two-month high at 1.3311. The pound lost ground after reports the EU-UK trade talks are still facing obstacles, raising concerns a deal might not be reached after all. The dollar index rose 0.1% on Thursday for the fourth straight session against a basket of major rivals. Political tensions surrounding the results of US elections are boosting dollar haven demand among other factors.
The energy services firm "Baker Hughes" announced today that the US crude oil drilling rigs count rose 4 rigs to 183 during this week. While the natural gas rigs rose 2 to 75 rigs, with the total of oil and gas rigs rising by 6 to 261 rigs.
The Australian dollar rose on Tuesday, and shrugged off the lingering uncertainty over the coronavirus crisis and the rising infections in several countries around the world. No drug company has revealed a launch date for an effective and safe Covid-19 vaccine so far, which ebbs hopes about containing the disease. Following the recent spike of infections in several European countries, some governments announced re-imposing partial lockdown restrictions. The number of Covid-19 infections surpassed 40 million confirmed cases worldwide, with a death toll of more than 1 million victims. While no agreement has been reached so far between the US Congress and the White House on the second Covid-19 aid package. As of 17:41 GMT, AUD/USD rose 0.2% to 07139, after hitting a high of 0.7147 and a low of 0.7115.