Dollar Down: The US Dollar falls as investors are optimistic about the recovery of the Global Economy.
The U.S. dollar falls to its three-week low on today as the growing optimism about the possible recovery of the global economy, in the coming months of this year, sent investors scurrying to purchase riskier currencies including the euro, the pound and crown.
Against other currencies, the dollar steadied at 90.229, its lowest level since Jan. 27. It has fallen nearly 1.5% over the past eight trading sessions. The dollar traded near milestone lows against other currencies. The risk-sensitive Australian dollar hit a one-month high of $0.7802 and the kiwi made a five-week peak of $0.7257.Forces pushing these positive outlook include sharp gains in crude oil prices and optimism over better growth ahead due to the impressive roll-out of COVID vaccines.
Also, the optimistic mood of investors also affected the safe-haven Japanese yen, as it fell through its 200-day moving average and struck multi-year lows against the euro, Aussie and Swiss franc.
Riding on the waves of investors optimism, Sterling, extended gains to hit $1.3946, its highest level since April 2018 as Britain leads the world in per-capita vaccination speed. The euro crept 0.2% higher to $1.2150 to re-test recent resistance at that level. Rising oil prices lifted the Canadian dollar and Norwegian crown to multi-week highs.