Dollar Up as Investors Await Biden’s “Trillions” in U.S. Stimulus Plans By

© Reuters.

By Gina Lee – The dollar was up on Thursday morning in Asia, continuing a rebound from near three-year lows against major peers as investor await U.S. President-elect Joe Biden’s plans for further stimulus measures.

The that tracks the greenback against a basket of other currencies inched up 0.04% to 90.373 by 11:11 PM ET (4:11 AM GMT). The index was little changed on Thursday after adding 0.3% during the previous session. It fell to as low as 89.206 for the first time since March 2018 on Jan. 6.

The pair edged up 0.17% to 104.03. The dollar remained little changes against the yen, after a previous 0.1% rise.

The pair edged up 0.19% to 0.7747 and the pair was up 0.24% to 0.7195.

The pair inched up 0.05% to 6.4712. Chinese trade data released earlier in the day outperformed, with growing 18.1% year-on-year, growing 6.5% year-on-year and the at $78.17 billion in December.

The pair inched up 0.03% to 1.3640.

Biden is scheduled to unveil plans for “trillions” of dollars in further COVID-19 stimulus measures later in the day. Investor expectancy that the measures will lead to faster economic recovery lifted U.S. Treasury yields, in turn giving the greenback a boost.

Investors continued to unwind bearish bets, which also helped the U.S. currency hold onto gains made on Wednesday. The prospect of more stimulus measures weighed in on U.S. government bonds and saw the benchmark Treasury yield top 1% for the first time since March 2020, in turn leading the dollar to ee gains in four of the past five trading sessions.

held onto its 10% gains from Wednesday, rallying after a slide of almost $12,000 from its all-time high of $42,000 seen during the previous week. The digital currency was 0.6% higher at $37,655 on Thursday, climbing up from the low of $30,261.13 seen on Jan. 11.

However, some investors were cautious and warned that the dollar’s bounce could be temporary, as a build-up of bearish positions are unwound. FOREX speculators have been net short the dollar since March 2020 as a surge in investors’ appetite for riskier assets turned them away from the dollar. More stimulus will also support risk sentiment in the long term, further dampening demand for the safe-haven dollar.

“I think positioning in risk assets is becoming a concern, so there could be a squeeze in the dollar near-term,” Bank of America (NYSE:) chief Japan FX strategist Shusuke Yamada told Reuters.

“I am focusing on gradual dollar weakness in 2021,” Yamada added.

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