TOKYO- The dollar fell against most of its peers on Thursday amid fading hopes for a compromise between Republicans and Democrats over additional stimulus for the US economy.
The Australian dollar rose after better-thanexpected jobs data eased concerns about a persistent coronavirus outbreak in the country’s second-largest city.
The greenback was hampered by a decline in Treasury yields, but analysts say this is likely only a temporary setback because US lawmakers will eventually agree to more stimulus to help the economy recover from the coronavirus.
“The dollar needs positive news on stimulus to rise further, but I’m sure we’ll get there, because these politicians can’t go back to their constituencies empty handed,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities in Tokyo.
“Once this happens, gains in dollar/yen could be a catalyst for dollar gains against other currencies.”
Against the euro, the dollar fell to $1.1813, adding to a 0.4 percent decline on Wednesday.
The British pound rose 0.25 percent to $1.3067.
The dollar fell 0.2 percent against the safe harbor Swiss franc to 0.9105.
The dollar pulled back from a three-week high to trade at 106.65 yen.