Dollar plunges to 2-year low

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    SYDNEY- The dollar fell to a more than two-year low on Monday and is set to log its largest monthly fall since July, as a combination of vaccine optimism and bets on more monetary easing in the United States drives investors out of the world’s reserve currency.

    Against a basket of currencies, the greenback slipped 0.1 percent to 91.707, its lowest since April 2018. The risk-sensitive New Zealand dollar hit a two-and-a-half year high and is headed for its best monthly percentage gain in seven years.

    “The themes remain familiar: broad dollar weakness amid improving risk appetite,” ANZ Bank analysts said in a note.

    “This sentiment is likely to continue into December and the (US Federal Reserve) meeting, at which some further action is likely, given the near-term virus risks in the United States.”

    The euro and Australian dollar each rose slightly to three-month peaks. The Aussie is up more than 5 percent for the month, the kiwi 6.4 percent and the euro 2.7 percent.

    Sterling stood at $1.3325, having climbed steadily this month to its highest since September, as investors wagered a Brexit deal would be brokered even as the deadline for talks loomed ever larger.

    The dollar index is down some 2.4 percent for November as promising trial results for three major vaccine candidates excited investors about an eventual end to the coronavirus pandemic. It is nearly 11 percent below a March peak of 102.990.