Republicans and Democrats remained far apart on Tuesday on how much to spend on the next round of coronavirus relief as they discussed proposals to extend unemployment insurance for Americans thrown out of work and provide more money for schools.
House Speaker Nancy Pelosi said the US$ 1 trillion package the Republicans are considering is not sufficient. The Democratic-run House of Representatives passed a US$ 3 trillion relief bill two months ago that the Republican-majority Senate has ignored.
Some investors in the dollar may look to U.S. existing home sales due later Wednesday and weekly jobless claims on Thursday for inspiration, but the focus is likely to remain on policymakers' response to an unprecedented public health crisis.
Concern about disagreement over stimulus spending in the United States is in contrast to the European Union.
Read Also: Oil prices up on virus vaccine hopes, EU stimulus deal
The 27-member bloc worked over the weekend to narrow their differences and agree a € 750 billion (US$ 864.90 billion) recovery fund and a € 1.1 trillion 2021-2027 budget to help the continent recover from its deepest recession since World War Two.
The onshore yuan rose to 6.9649 per dollar to reach the strongest since March 11, highlighting the dollar's lack of support during the Asian session.
Elsewhere, the Antipodean currencies took advantage of the greenback's weakness and pushed higher.
The Australian dollar rose to US$ 0.7144, closing in on the highest since April last year.
The New Zealand dollar edged up to US$ 0.6649, approaching the highest since January this year.
