Dollar on a weaker side

The dollar weakened to multi-year lows against many currencies on Wednesday as currency traders looked past a new delay in U.S. stimulus checks and maintained bets additional financial aid was still likely.

The greenback hit its weakest level in more than two years against the euro, the Australian and the New Zealand dollars.

The greenback also crashed to the lowest in more than five years against the Swiss franc and fell broadly against Asian currencies.

The dollar has fallen steadily since U.S. President Donald Trump signed a coronavirus aid and spending bill on Sunday, because more stimulus for the world’s largest economy reduces demand for the perceived safety of holding the greenback.

“Our weak dollar call remains intact as we move into 2021,” analysts at BBH wrote in a research memo.

“What happens to the greenback … largely depends on how well the United States controls the virus in 2021 as well as the outlook for further fiscal stimulus.”

The dollar fell to $1.2295 per euro on Wednesday in Asia, its weakest since April 2018.

The British pound rose to $1.3543.

Against the Swiss franc, the dollar touched 0.8819, the weakest since January 2015.

The dollar fell to 103.27 yen.