Dollar under pressure

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    TOKYO- The dollar struggled to recoup heavy overnight losses on Wednesday after it slipped to 27-month low the previous session as uncertainties about an economic recovery and the US fiscal stimulus package weighed.

    The dollar hit fresh lows against most major currencies overnight as the ongoing effects of the Federal Reserve’s stimulus programs weakened the greenback broadly and lifted US stock indexes to record highs.

    The dollar last sat at 92.179 against a basket of currencies.

    The euro changed hands at $1.1949, having strengthened to its highest level since May 2018 in the previous session.

    Sterling edged above Tuesday’s eight-month high of $1.3241, last quoted at $1.3255.

    “There is a strong momentum for investors to want to sell the dollar,” said Juntaro Morimoto, an analyst at Sony Financial Holdings, pointing that the greenback has been declining since last month.

    Although the dollar often functions as a safe-haven investment in times of crisis, it has fallen since the Federal Reserve’s intervention into financial markets to maintain liquidity in the midst of the COVID-19 pandemic.