RATE DOLLAR - TOKYO. The dollar nursed losses against most currencies in Asian trade on Wednesday, undermined by concern that Republicans and Democrats are struggling to reach consensus on the next round of U.S. economic stimulus measures.
The euro traded near its strongest level in more than a year after European leaders agreed a stimulus plan to fuel recovery from the economic drag caused by the COVID-19 pandemic.
Risk appetite has improved greatly this week as progress in developing vaccines for the novel coronavirus reduced the U.S. dollar's safe-harbour appeal.
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Investors also expect a massive amount of fiscal spending to support growth in major economies but could easily be disappointed if any stimulus falls short of expectations.
"You could say the dollar is weaker due to a risk-on move," said Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors in Sydney.
"Ironically, the dollar's weakness has been exacerbated by concerns that the United States is not doing as much as the Europeans have on stimulus."
Against the British pound, the dollar traded at $1.2727, close to a six-week low. The dollar fell to 0.9323 Swiss franc to reach the lowest since March.
The euro briefly touched the highest since Jan. 10 before settling at $1.1539. Against the pound, the euro was little changed at 90.67 pence.
The dollar was steady at 106.79 yen.
