The US dollar traded stable although still depreciating against most major currencies. Strengthening from the initial downturn caused by the actions of US President Donald Trump which halted negotiations on a new fiscal stimulus. This move has led to an increase in demand for safe haven assets.
Trump's surprise decision to halt fiscal stimulus talks until after the November 3 presidential election has prompted a massive sell-off in the Wall Street market with investors preparing for the risk of a new downturn in the wake of the faltering US economy.
The initial shock of the announcement began to subside when the U.S. President asked Congress to provide $ 25 billion in new salary assistance to airlines.
Overall, analysts say that uncertainty about the stimulus will encourage investors to trade risky currencies with caution.
The US dollar index, which measures the greenback dollar against six major currencies, has declined to 93.662 as of 08.55 p.m.
The GBP pound began to show against the US dollar with a strengthening of 0.12% to 1.2891. Among the factors driving the pound sterling was optimistic promises by Prime Minister Boris Johnson.
The Euro continued to strengthen against the US dollar with a strengthening of 0.32% at 1.1772. The Australian dollar AUD strengthened 0.54% to $ 0.7145 after declining more than 1.1% on Tuesday.
Analysts believe the Aussie currency faces a downturn in anticipation of the Reserve Bank of Australia's move to reduce interest rates and buy more government debt.
Federal Reserve Chairman Jerome Powell on Tuesday warned that the U.S. economy could contract if the outbreak of the Covid-19 outbreak is not handled effectively.
