Dollar weakens

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    SINGAPORE – The safe-haven dollar and yen nursed losses on Thursday, after the revival of hopes for some US spending improved investor sentiment and appetite for riskier currencies.

    A flurry of late-Tuesday tweets from President Donald Trump, after he cancelled talks with Democrats over coronavirus relief, suggested he was open to piecemeal spending measures.

    That lifted equity markets and commodity currencies and sank the safe-haven yen to a three-week low of 106.11 per dollar overnight. The dollar was weaker on most other majors.

    The euro edged up 0.2 percent to $1.1767 and held there early in the Asia session. The risk-sensitive Australian dollar lifted off a one-week low and rose about 0.5 percent overnight to hold at $0.7137 in Asia.

    With no fresh clues on stimulus, morning moves were slight and leaned in favor of the greenback. The New Zealand dollar slipped 0.4 percent after a central bank official said the bank was “actively working” on negative rates.

    Top White House officials have played down the likelihood that anything gets passed, but House Speaker Nancy Pelosi is pursuing a standalone bill for aid to airlines.

    “It looks like they still can’t agree on a bigger package,” said Commonwealth Bank of Australia currency analyst Joe Capurso. “If they could get an agreement on that, you’d get a bit more of a reaction and the US dollar would fall.”