Dollar falls on rising euro, higher US stocks

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NEW YORK
The dollar fell in North American trade on Tuesday as the euro rose on optimism about the possibility of a European Union stimulus package and as U.S. stocks gained. The U.S. dollar index, which measures the safehaven greenback against a basket of six rival currencies, was down 0.31% to 96.265. The weaker dollar was partly attributable to a move higher in the euro on hopes the European Union will agree on a rescue financing package that will limit the economic damage to the bloc from the coronavirus pandemic. The euro was up 0.47% at $1.139. The European Union’s approval of its recovery fund may see the euro test $1.150 with a break leading to a test of crucial resistance levels around $1.180. “Market consensus has shifted towards the euro on the assumption that euro area will suffer less economic damage and that a large rescue package will be approved,” said Karl Schamotta, chief market strategist at Cambridge Global Payments.—Reuters