The U.S. dollar held onto gains against most currencies on Wednesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus prompted a shift to safer assets.
During the Asian session, the yuan will be in focus as traders watch to see whether Chinese officials’ efforts to slow the currency’s rise continue to have an impact.
The euro and British pound are likely to extend declines, analysts said, as a return of restrictions on economic activity in Europe and Britain to battle a second wave of coronavirus infections unnerves investors.
The dollar last stood at $1.1744 per euro, holding onto a 0.6% gain from the previous session.
The pound traded at $1.2936, nursing a 1% loss from Tuesday.