The dollar nursed losses against major currencies on Tuesday after encouraging data from the trial of a vaccine for COVID-19 reduced safe-haven demand for the greenback.

The euro held onto hefty gains against the Swiss franc and the dollar following a proposal by France and Germany for a 500 billion euro ($543 billion) recovery fund offering grants to regions hit hardest by the coronavirus crisis.

Currencies linked to commodities and other riskier assets were broadly supported thanks also to a sharp rebound in oil prices as investors’ focus turned to recovery from the pandemic.

The euro bought $1.0917 in Asia on Tuesday, having gained 0.9% against the greenback in the previous session. The common currency traded at 1.0607 Swiss franc after jumping on Monday to the highest in more than two months. The pound also benefited from the dollar’s losses and rose to $1.2215. The dollar was little changed at 107.43 yen.

Source : Reuters