Dollar Recovers After Falling To 2-1/2-year Low

23.11.2020 21:06 (UTC +0)

The U.S. dollar fell in the Asian session on Monday and hit its lowest level since April 2018, but recovered to move above the flat line later in the session, scoring gains against some of its peers.

The dollar's safe-haven appeal fell earlier in the day after more positive news emerged on the vaccine front.

After recent positive updates from Pfizer and Moderna, there is more encouraging news on the Covid-19 vaccine front, with the Oxford University and AstraZeneca Pharma announcing that their vaccine for the novel coronavirus could be around 90% effective under one dosing regimen.

"Today marks an important milestone in our fight against the pandemic. This vaccine's efficacy and safety confirm that it will be highly effective against Covid-19 and will have an immediate impact on this public health emergency," AstraZeneca chief executive Pascal Soriot said in a statement.

Meanwhile, the FDA's outside advisers are slated to meet on Dec. 10 to review Pfizer's emergency-use application for its vaccine.

The dollar index, which fell to 92.02, recovered and hit a high of 92.80 before noon. It was last seen at 92.53, up 0.15% from previous close.

Against the Euro, the dollar firmed up to $1.1843, gaining 0.11%. The Eurozone manufacturing purchasing managers index (PMI) fell to a three-month low level of 53.6 in November from 54.8 in October, according to the preliminary report from IHS/Markit Research. The Services PMI dropped to a six-month low level of 41.3.

The Pound Sterling was weaker by about 0.31%, fetching $1.3324 a unit, compared to $1.3283 on Friday. The UK private sector contracted the most in six months in November, flash survey results revealed. The IHS Markit/Chartered Institute of Procurement & Supply composite output index dropped to 47.4 in November from 52.1 in October.

The Yen weakened to 104.54 a dollar, sliding from 103.85.

Against the Aussie, the dollar gained some ground, firming up to 0.7289 from 0.7302.

The Swiss franc was weaker at 0.9125, drifting down from 0.9113 a dollar. The Loonie was stronger, quoting at 1.3084 a dollar, up from 1.3095, thanks to higher crude oil prices.

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