Dollar Firms Up Against Peers After Trump's Tweet On Stimulus Talks
The U.S. dollar firmed up against its peers on Tuesday, with a substantial part of its gains coming after U.S. President Donald Trump tweeted that he is calling off stimulus negotiations.
Trump tweeted that he has instructed his administration’s negotiators to stop stimulus discussions with Democrats until after the Nov.3 presidential election.
Earlier in the day, Federal Reserve Chairman Jerome Powell said during his speech at the National Association for Business Economics that the U.S. economic recovery U.S. economic recovery remained far from complete and the economy needs more fiscal support.
“The recovery will be stronger and move faster if monetary policy and fiscal policy continue to work side by side to provide support to the economy until it is clearly out of the woods.”
House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour about coronavirus relief on Monday, but emerged without an agreement.
They were expected to talk again today, continuing a recent flurry of activity working towards a deal on legislation.
The dollar index, which had eased to 93.34 earlier in the day, was last seen at 93.79, up 0.3%.
Against the Euro, the dollar firmed up to 1.1734, gaining 0.45%
The pound sterling was down 0.85%, fetching US$ 1.2873.
The yen was stronger by about 0.1% at 105.64 a dollar, after having firmed up to 105.48 earlier.
The Aussie was weak, fetching US$ 0.7101, compared with US$0.7181 late on Monday.
The Swiss franc was weaker at 0.9178 a dollar, down 0.25% from 0.9154, while the Loonie was weaker at 1.3314 a unit of greenback, falling from previous close of 1.3263.