Dollar bounces from two-year lows, further weakness seen likely
The dollar index bounced off a two-year low on Tuesday, but looked primed for further weakness as the United States continued to see a rise in coronavirus cases, while the Federal Reserve is expected to maintain very loose monetary policies.
The dollar index against a basket of currencies rebounded by 0.18% to 93.71, after dropping to 93.47 on Monday, the lowest since June 2018.
With no new events driving the move, analysts said the greenback is likely consolidating before heading lower again.
The continued spread of coronavirus is hampering the U.S. economic recovery, while regions like Europe appear to have the virus contained.
The dollar index has fallen from a three-year peak of 102.99 in March.
The euro dipped 0.18% against the dollar to $1.1730, after reaching $1.1781 on Monday, the highest since September 2018.
The dollar dipped 0.33% to 105.02 yen on Tuesday, after earlier getting as low as 105.01 yen, the weakest since March 13.
Reference: CNBC
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