The US dollar depreciated in Asia this Wednesday morning. This followed after the hope for economic recovery around the globe was uplifted. This optimism caused the investors to turn towards those assets that were at risk. Although, the overall market moves were small.
The early arrival and availability of the Covid-19 vaccine, along with the clear conclusion of the Presidential elections of the US, brought about some significant changes in the market. The Industrial Average of Dow Jones went above 30,000. This previous session event has never been seen before. The shares of Asia Pacific too rose.
The US dollar reached a 2 month low in comparison with the NZD and AUD. It also went close to a 2 week low in comparison to the Euro.
There is strong hope regarding the availability of the coronavirus vaccine and its availability. All three different vaccine companies are witnessing positive results in their experiments. AstraZeneca PLC, on Monday, reported results that were positive for the candidates who were tested, AZD 1222. The same was reported by Moderna Inc and Pfizer Inc.
The administration of President, Donald Trump, has begun to work in cooperation with that of Joe Biden, the President-elect. This is being done for a smooth flow of transition, following the newly found optimism. Although, this statement, in no manner, means that Trump has shown any signs of pausing the legal challenges concerning the Presidential elections.
There is a continuous decline in the US dollar in the short term, as it is no more a currency of safe harbor. There lies a number of reasons for this. Janet Yellen, the former Chairman of the Federal Reserve, is likely to get nominated as the Secretary of Treasury of the Joe Biden administration. She has always stood strongly for more fiscal spending. This removes the huge uncertainties living in the mind of investors.
An increase in the appetite for risk was indicated by bitcoin, the cryptocurrency, that is associated with high-level volatility. And it trades at a high level almost all the time.
The pair of USD/JPY inched 0.10% to 104.54.
The pair of USD/CNY fell down 0.18% to 6.5779. under the Biden administration, the yuan rose. This was because of the hope of better Sino-US relations.
The US Dollar Index studies the greenbacks in detail, against a bunch of other currencies. According to its studies, the currencies edged down from 0.17% to 92.067. This happened by 11:55 PM ET.