The US dollar continued to depreciate but was limited against other major currencies to a two-year low against the Euro before investors remained cautious as there was a possibility of increased US fiscal stimulus.
Senate Majority Leader Mitch McConnell blocked Democrats' immediate action to increase stimulus payments to Americans by an additional $ 1,400.
McConnell objected to a motion proposed by Minority Leader Chuck Schumer to unanimously approve a check aid bill that was passed by the House of Representatives on Tuesday.
He suggested the Senate would at least look into the issue first. In other words, the Senate will first consider increasing stimulus payments along with other demands from President Trump.
Market analyst Edward Moya argues that this delay is inevitable but he argues that with the Biden administration, there are expectations that there will be more stimulus. On that basis the depreciation of the US dollar began to be limited driven by market optism.
The US dollar index, which measures the greenback against the major, recorded only a slight decline of 0.01% to the 89.648 exchange rate as of 11.15 p.m.
The pound was strong 0.30% against the US dollar to the 1.3664 exchange rate. The Euro fell 0.31% against the US dollar to the exchange rate of 1.2257 as of 9.50 p.m.
By the new year, investments are less active as investors reduce investment activity.
