The U.S. dollar has lost some of its safe-haven luster as traders turn to riskier assets, including some funded in other currencies, following positive news about COVID-19 vaccines and a seemingly normalizing U.S. transition of power.
Former Fed Chair Janet Yellen’s reported nomination to Treasury secretary has emboldened those risk bets and further weighed on the dollar.
“From here, the Fed will prove a mere auxiliary to maximize fiscal impact by ensuring cheap funding,” said John Hardy, head of FX strategy at Saxo Bank.
“The long-term implications of the Yellen nomination are distinctly dollar negative.”
The dollar index fell 0.147%, with the euro up 0.24% to $1.1916.
The Japanese yen was flat versus the greenback to 104.44 per dollar, while sterling was last trading at $1.3383, up 0.20% on the day.
On Wall Street, a surprise jump in weekly jobless claims added to signs the recovery in the labor market was stalling as the United States battled a new wave of COVID-19 infections.
MSCI’s broadest gauge of world stocks was last flat after renewed demand for shares earlier pushed it to a record high of 622.12.
