- The dollar index looks to extend Tuesday’s gain on risk aversion.
- Risk sentiment has weakened with Trump’s decision to abort stimulus talks.
The dollar index (DXY), which tracks the greenback’s value against majors, is gaining altitude as President Trump’s decision to halt fiscal stimulus talks has weakened the risk sentiment.
At press time, the DXY is trading near 93.30, having risen by 0.43% to 93.93 on Tuesday. Meanwhile, major Asian equity indices like Japan’s Nikkei and Hong Kong’s Hang Seng are tracking Wall Street lower.
The US stocks fell on Tuesday, boosting haven demand for the US dollar after the President announced on Twitter that he had halted negotiations for additional stimulus until after the election.
Trump’s tweet came after Federal Reserve’s President Jerome Powell warned that the US economic recovery would lose traction without more fiscal support.
Stocks moved higher on Monday, pushing the US dollar lower across the board on news of Trump making a quick recovery from coronavirus.