The euro continued to rise to a two-year high of the US dollar at the start of the Asian session after breaking the 1.2000 price level following the weakness of the US dollar.
The testimony of Federal Reserve (Fed) Chairman Jerome Powell and Treasury Secretary Steven Mnuchin before the Senate Banking Committee was the main focus of the market during the previous session which saw some discussions to step up Covid-19 stimulus measures.
The proposal for a $ 900 billion aid package, described as a 'best effort' by Democratic Senator Mark Warner and possibly a Democrat and Republican agreement, has led to a surge in the stock market.
This has led to the weakening of the already weak greenback dollar, further to a 2 and a half year low against most major currencies.
Meanwhile, separately, Senate Majority Leader Mitch McConnell also proposed a new $ 1.4 trillion stimulus measure that needs to be approved to stop the government's closure amid the epidemic.
In addition, also supporting the strengthening of the euro is the publication of stronger economic data than expected. Germany shocked the market by reporting a decline in the number of unemployed which helped reduce the unemployment rate. The revised European Zone manufacturing PMI data showed better readings.
In addition, the market is also shown with USM ISM survey manufacturing PMI data which shows weaker-than-expected growth thus raising investor concerns about the country's economy.
The dollar index, which measures the strength of the greenback dollar against a basket of major currencies, traded lower at 91.22.
