The US dollar regained strength by successfully capturing overnight losses and the euro also strengthened for a second day on Tuesday if risk sentiment began to recover partially after selling among traders and traders in global markets.
Most major currencies were impressed on Monday following the spike in cases of the Omicron variant of the Covid-19 which may lead to the re-imposition of economic barriers. This has raised concerns about the near-term economic outlook.
The situation is even more worrying when US Senator Joe Manchin, states that he will not endorse a stimulus package that boosts sales in global markets. But today, he announced a change of view by raising reserves to back President Joe Biden's $1.75 trillion fiscal bill. This has indirectly changed the perception of market players.
The US dollar index, which measures the US dollar against major currencies, was up 0.1% at 96.42.
Investors remain confident in the outlook for the US dollar with recent data near their highest level in more than two years.
The Australian dollar, which is among the worst-affected currencies following its high correlation with the global economic outlook, bounced on Tuesday, snapping a second straight day of losses. The euro also strengthened to a trading level of $1.1293 against the US dollar.
Finally more surprising the Turkish lira jumped 15% higher on Tuesday, continuing its historic recovery from record lows, after President Tayyip Erdogan unveiled a draft he said would guarantee local currency deposits against market volatility.
