The dollar held near a four-month high on Wednesday amid hopes the spread of the coronavirus had slowed, with the New Zealand dollar gaining after the central bank dropped a bias toward lowering interest rates.
Across mainland China 2,015 new cases of coronavirus were confirmed as of Tuesday, the lowest daily rise since Jan. 30. China's senior medical adviser also said the outbreak might be over by April.
The slowdown in the number of new cases encouraged investors to resume seeking yields. The dollar has benefited from that approach, thanks to its relatively high interest rates. For example, spreads between U.S. and German 10-year bond yields are holding at a more than two-year highs above 200 basis points.
Against a basket of major currencies, the dollar edged 0.1% higher at 98.77, just below a four-month high of 98.95 hit in the previous session.
Recession fears in Europe dragged the euro to a four-month low overnight. It has since recovered to trade flat at $1.0915.
Source : Reuters