Market concerns over the new Covid-19 variant began to subside and prompted major currencies to record gains in the New York session, but re-traded cautiously at the start of the Asian session.
Market sentiment was helped by a statement from the World Health Organization (WHO), which sought to allay concerns about the latest virus mutations detected in the UK.
In a press conference on Monday, the Executive Director of the WHO Emergency Program said that the new variant was in a controlled state and it could be curbed with the use of existing health measures.
This has provided some relief to investors, but the market remains wary and worried about the impact on the economic recovery due to tighter restrictions and the affected aviation system following the closure of borders by many countries from the UK.
The dollar index that measures the strength of the greenback dollar against a basket of major currencies remains stable despite being far below the highest peak reached yesterday.
The movement of most major currencies was somewhat limited during the Asian session as investors awaited the outcome of the US stimulus bill vote by the House of Representatives today.
The bill voting process is still ongoing in the House with the majority of the number of votes seen to have a great chance of being passed. If passed, the bill will be taken to the Senate for a vote.
The pound depreciated slightly after jumping to 1.34000 yesterday, still under pressure from concerns over the impact of the UK economy following the implementation of stricter restrictions and Brexit uncertainty.
