TOKYO- The dollar was softer against riskier currencies on Tuesday on rising optimism that US lawmakers could agree on new stimulus to blunt the economic impact of the coronavirus.
Risk appetite also improved after US President Donald Trump left the hospital and returned to the White House following treatment for COVID-19.
“I think hopes of US stimulus are the main driving force,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.
“As for Trump’s discharge, the impact is not clear-cut but it is seen as positive for risk environment to the extent that there are less worries about the White House getting caught in complete chaos and unable to make decisions,” he said.
The euro traded at $1.1788, following a gain of 0.58 percent on Monday.
The pound changed hands at $1.2990, tackling its resistance around $1.30, despite concerns about a no-deal Brexit.
The dollar advanced on the safe-haven yen to 105.77 yen, near its highest levels in three weeks.
The dollar’s index against a basket of six major currencies dropped to 93.422, touching its lowest level in two weeks.