The United States Dollar gained against global counterparts after lawmakers signaled possible stimulus approval.
The US dollar gained against all the haven currencies, Japanese Yen and the New Zealand Kiwi to exchange at ¥104.071 and NZ$0.7187, respectively.
Against the British Pound, the American Dollar gained 10 cents to $1.3493 while against the European common currency it gained 68 cents to $1.2161 to a single Euro as at 10:58 am Nigerian time on Monday.
The gain in the US dollar was as a result of Joe Biden’s recent promise that trillions in extra pandemic-relief spending will be made available to the American people. Previously, experts normally doubt such declaration, however, given that Democrats now control both the lower and upper houses, analysts are now predicting a more soft landing for the president-elect on policy.
Rising U.S. yields help reduce inflation concern per adventure policymakers go ahead with additional capital injection.
“It is hardly surprising that the recent acceleration in real U.S. yields has reminded the FX markets to end its focus on inflation and to assume a more comprehensive approach in its dollar valuation,” Commerzbank strategists said in a note.
“That means: things are not looking so bad for the dollar at present that EUR-USD levels of 1.2350 and above would currently be justified.”