By Karen Brettell
NEW YORK (Reuters) – The dollar dipped on Wednesday as risk appetite improved on hopes of at least some new fiscal stimulus before the November 3 U.S. Presidential election, and as investors priced for the prospect of a Democrat victory next month.
President Donald Trump said late on Tuesday that Congress should quickly extend $25 billion in new payroll assistance to U.S. passenger airlines furloughing thousands of workers as air travel remains down sharply amid the coronavirus pandemic.
Trump had earlier on Tuesday abruptly ended talks with Democrats on an economic aid package, which sent stock markets tumbling and boosted demand for the dollar.
“Those comments about having some options regarding putting some of the stimulus plans back in action certainly has buoyed the market and injected more optimism, and you can see that’s why the dollar’s weaker today, it’s really a ‘risk on’ mentality,” said Minh