Dollar Extends Slide To 4th Day

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The U.S. dollar exhibited weakness against most of its peers on Wednesday, extending recent losses, as rising concerns about coronavirus spread and an escalation in U.S.-China tensions, triggered a sell-off in the currency.

Markets were also following the developments on the stimulus front, where Republicans and Democrats had different views on the package that recommended a payroll tax cut and funding for coronavirus tests and the CDC. While the Republicans are for a near $1 trillion rescue bill, the Democrats are not in favor of the same.

Tensions between the U.S. and China have come to the fore again after the U.S. asked Beijing to close its diplomatic consulate in Houston within the next 72 hours and Chinese foreign ministry spokesperson Wang Wenbin condemned the action and warned of retaliation if the U.S. does not reverse its decision.

In coronavirus news, the U.S. pandemic may “get worse before it gets better” President Donald Trump said as the country reported more than 1,000 coronavirus-related deaths on Tuesday. More than 65,000 new covid-19 cases were recorded yesterday, adding to a nationwide tally of more than 3,874,000 since the pandemic began.

In economic news, a report from the National Association of Realtors showed existing home sales rebounded at a record pace in June, spiking by 20.7% to an annual rate of 4.72 million, after plunging by 9.7% to a rate of 3.91 million in May. Economists had expected sales to skyrocket by about 24.5%.

The Dollar Index, which slipped to 94.83, was last seen at 94.97, down 0.15%

Against the Euro, the dollar was down nearly 0.4% at $1.1570, after falling to $1.1602, while against Pound Sterling, the greenback was down marginally at $1.2740, easing from $1.2645.

The Yen was weaker at 107.17 a dollar, falling from 106.80 a dollar on Tuesday. Against the Aussie, the dollar weakened to $0.7141, easing from $0.7128.

The Swiss franc was stronger by 0.4% at 0.9296 a dollar, while the Loonie was firmer at 1.3419, up 0.3% from previous close.

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