The U.S. dollar stayed weak against most of its peers on Tuesday as positive developments on the U.S. political front, and continued optimism about coronavirus vaccine resulted in improved risk sentiment and dimmed the currency’s safe-haven appeal.
The dollar lost ground, after the General Services Administration told U.S. President-elect Joe Biden to begin the formal transition, recognizing him as winner of the election.
The move eased political uncertainty and enable Biden’s team to obtain funding, access to government data and other assistance.
Biden has reportedly picked former Federal Reserve Chair Janet Yellen as Treasury Secretary, a pivotal role in which she would help shape and direct his economic policies.
The dollar index, which fell to 92.17, recovered to 92.56 by mid-morning, but faltered again subsequently and was last seen at 92.14, losing more than 0.4% from previous close.
Against the Euro, the dollar weakened to $1.1893, sliding from $1.1842.
The Pound Sterling was stronger by about 0.3%, fetching $1.3362 a unit of Sterling, compared to $1.3323 Monday evening.
The Yen was up at 104.45 a dollar, firming up from 104.55 a dollar.
The Aussie was stronger by over 1% with the AUD-USD pair at 0.7363.
The Swiss franc was at 0.9912 gaining from 0.9919 a dollar.
The Loonie firmed up to 1.2998, gaining from 1.3082 a dollar, thanks to another sharp uptick in crude oil prices.