The depreciation of the US dollar continued until the European session after being hit by an increase in the stock market following positive market sentiment following the approval of the US coronavirus stimulus package.
Market excitement has not diminished following President Donald Trump signing a $ 2.3 trillion stimulus package on Monday, and the U.S. House of Representatives passed a bill to increase check aid from $ 600 to $ 2,000.
This has further boosted market sentiment to switch to risky currencies and release the hold on safe-haven.
Markets are now awaiting a decision from the Senate that will reportedly vote on a bill to increase stimulus assistance on Tuesday (US time).
Against most major currencies, the US dollar traded lower around the price level of 90.00, approaching its 2-year low of 89,273 previously.
The euro soared at 1.225000 against the US dollar before lowering its gains early in the European session.
Meanwhile, the pound began to gain strength to rise above the 1.35000 price level against the US dollar as markets remained cautious ahead of the UK Parliament's vote on the Brexit trade agreement on Wednesday.
European Union (EU) member states have agreed to a temporary implementation of the agreement reached last week.
On the other hand, the Aussie dollar and the kiwi continued to set the pace for a higher climb, aided by positive market sentiment.
