The US dollar weakened slightly against most major currencies in Wednesday's volatile trading session, amid uncertainty over US stimulus packages, Brexit and the coronavirus pandemic.
Entering the European session, the dollar index, which measures the strength of the greenback dollar against a basket of major currencies, fell 0.2% at 90.38.
Although major currencies began to rise, the movement on display was somewhat limited as sentiment was still influenced by concerns over a new variant of coronavirus in the UK.
Adding to the uncertainty in the market was after US President Donald Trump called on Congress to amend the agreed stimulus package by increasing the amount of aid for Americans and threatening not to sign it if it was seen as inappropriate.
If Trump does not sign the bill, it will be repealed immediately after Congress is adjourned. This will make the discussions of the previous months pointless. Not only that, but the US government will also be closed if Trump does not sign it.
The pound has risen slightly today, but remains under pressure following mixed news about Brexit. EU chief negotiator Michel Barnier said talks were at an 'important point' with 8 days left until the transition period ended.
On the other hand, the Aussie and New Zealand dollars also showed gains, ending episodes of the fall for 3 consecutive days. While the euro traded higher, approaching the price level of 1.22000 after a significant fall earlier this week.
