Dollar Drops Against Major Currencies on U.S. Stimulus Talks – 1 December, 2020

After holding stimulus talks for the first time since the U.S. election at the beginning of November, the dollar dipped to a 2 1/2- year low, with investors cautiously keeping an eye on developments. The dollar index fell by 0.7% to 91.318 overnight to its lowest levels since April 2018 when it hit 91.263. Weaker than expected U.S manufacturing data and questions about the Federal Reserve supporting the economy also weighed on the currency. Against the dollar, the euro reached a 2018 high at $1.2067. Sterling was at a near three month high against the dollar on Brexit negotiations progress, with the pound remaining steady at $1.3421. The Australian dollar was firm at 0.7389 per dollar, and the New Zealand dollar also settled close to a two year high at $0.7071.