The official inauguration of the 46th President of the United States finally went smoothly, where stock and currency investors welcomed the new administration of Joe Biden.
The quiet transition allows investors to shift their focus to President Biden’s 100-day agenda that includes aggressive promises for greater stimulus and wider distribution of the Covid-19 vaccine.
The greenback dollar traded lower against its major competitors in the Asian session, stressed concerns over more spending would lead to greater fiscal deficits.
The euro traded up again after declining in the previous session due to concerns over the risks posed by the extension of the coronavirus closure and the postponement of vaccine distribution.
Investors are now concentrating on tonight's European Central Bank (ECB) meeting which is expected to keep interest rates and their asset purchase program unchanged.
Like the ECB, the Bank of Japan (BOJ), which also held a policy meeting today, is not expected to change its monetary policy, but will lower its valuation and projections on the economy.
The US dollar depreciated against the yen, as well as other commodity currencies such as the Aussie, kiwi and Canadian dollars.
Meanwhile, the pound continued to strengthen around the latest high of more than 2 years recorded in the previous trading session after being supported by better-than-expected UK inflation data.
