TOKYO- The dollar wallowed near a six-week low against its peers on Tuesday as the euro led a rally on the back of a brightening outlook for the region’s vaccination program.
The dollar had already been losing traction as US bond yields have hovered below a 14-month peak touched last month, reducing the greenback’s yield attraction.
The euro rose to $1.2038, having touched a six-week high of $1.2048 on Monday while the British pound gained 1 percent overnight, its second biggest daily gain so far this year, and last stood at $1.3989.
Some analysts say support for the euro likely came from the announcement that the European Union has secured an additional 100 million doses of COVID-19 vaccine by BioNTech and Pfizer.
“Europe is really the main region which is going to see accelerating vaccinations this quarter. And later in the year, we will see accelerating vaccinations, broadly, in emerging market economies,” Zach Pandl, co-head of foreign exchange strategy for Goldman Sachs in New York.
“The US got ahead of the curve in the first quarter, but other countries are going to be quickly catching up.”
The dollar index dropped to 91.085, having lost 2.5 percent from its five-month peak hit last month.
