FOREX - U.S. Dollar Slides, Investors Still Looking For Safe Haven

By Gina Lee

Investing.com - The U.S dollar extended its slide into a fourth day on Wednesday morning in Asia as investors continued to avoid risk.

The U.S. dollar index, which tracks the greenback against a basket of currencies, slid 0.55% to 101.690 by 11:22 AM ET (3:22 AM GMT).

The USD/JPY pair was down 0.26% to 110.92 as the International Olympic Committee (IOC) announced the postponement of the Tokyo 2020 Olympics to next year.

The AUD/USD pair gained 0.32% to 0.576 and the NZD/USD pair gained 0.15% to 0.5835.

The USD/CNY pair gained 0.11% to 7.0686. The GBP/USD pair gained 0.4% to 1.1804.

Asian stock markets got a boost from hopes of the U.S. Senate passing a $2 trillion stimulus package but the greenback remained as a safe haven for investors as talks spilled over into Wednesday and the number of COVID-19 cases continued to rise.

“It’s a nice rebound and we can probably run with it through the Asian session, but whether this mood can hold 24 hours from now, I’m not convinced,” Sean Callow, Westpac FX analyst, told CNBC.

“The overall (virus) picture is still very grim and almost certainly going to get worse,” he added.

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