Dollar Exhibits Weakness Against Peers

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The U.S. dollar was weak against its peers on Monday as rising equities, data showing an improvement in China’s industrial profits and optimism about a new coronavirus relief bill in the U.S. dimmed the currency’s safe-haven appeal.

Data from National Bureau of Statistics showed that China’s industrial profits grew for the fourth straight month in August.

Industrial profits rose 19% year-on-year to 612.81 billion yuan in August, following a 19.6% increase in July.

Rising hopes for fresh stimulus also boosted sentiment. House Speaker Nancy Pelosi said on Sunday that a new package is still possible. House Democrats plan to unveil a new $2.4 trillion coronavirus relief bill.

The price tag for the bill is $1 trillion less than a stimulus package the House passed back in May but may still be too high for Republicans.

Traders were looking ahead to upcoming economic data and the first presidential election debate between U.S. President Donald Trump and his Democratic rival Joe Biden for directional cues.

The dollar index slid to 94.15 in the European session as the euro and Sterling strengthened amid increased risk appetite. The index recovered to edge past 94.40 before noon, but eased to 94.29 subsequently, netting a loss of nearly 0.4%.

The Euro firmed up to $1.1677 by mid morning, and was last fetching $1.1666, nearly 0.3% more than Friday’s close.

Against Pound Sterling, the dollar weakened to $1.2833, giving up about 0.7%.

The Yen was slightly stronger at 105.53 a dollar, compared to 105.58 a dollar on Friday.

The Aussie firmed up more than 0.6%, with the AUD-USD pair trading at 0.7073.

The Swiss franc was firmer at 0.9245 a dollar, while the Loonie was up 0.1% at C$1.3373 a dollar.


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