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Euro set for seventh day of gains, dollar loses to riskier assets

The euro topped an 11-week high on Wednesday, on track for a seven-day winning streak, with the dollar falling against most currencies as the prospects of more stimulus and hopes for economic recovery emboldened investors to buy riskier assets.

The Australian dollar hit a five-month high of 0.6982 against the greenback, as funds sought exposure to economies expected to make the fastest recoveries from the coronavirus pandemic.

The U.S. dollar also fell against the British pound, the Norwegian and Swedish crowns, and the Canadian dollar as mass protests against racism across the United States weighed.

An index following the dollar against six major currencies fell to nearly a three-month low of 97.32.

President Donald Trump has threatened to use the military to quell spreading protests against racism and police brutality. U.S. stocks continue to rally, however, leaving some currency traders confused about the market’s direction.

Generally, participants preferred to bet on a global economic recovery as governments ease lockdown measures, despite the threat that unrest in the United States could halt progress.

Dollar/yen was last neutral at 108.65.

The euro reached an 11-week high of $1.1125 on expectations policymakers will support the euro zone’s weakest economies with debt purchases. The common currency was last up 0.5%. The seven-day winning streak was the longest since December 2013.

The euro also rose against the Swiss franc to $1.0797, the highest since Jan. 14.

The European Central Bank is expected to increase its 750 billion euro ($839.25 billion) bond-buying programme, the Pandemic Emergency Purchase Programme, when it meets on Thursday. The Chinese yuan rose to nearly a one-month high of 7.0883 against the dollar in the offshore market.

Euro set for seventh day of gains, dollar loses to riskier assets, Reuters, Jun 3

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