Dollar falls as liquidity fears recede

The US dollar fell on Tuesday, to head for its first daily loss in 5 days, and pullback from its 2-week high of 100.93 points, on profit-taking, in addition to fears over a liquidity crunch easing, amid a strong recovery wave in most global stock markets.

The dollar index fell 1.0% to 99.80 points, after it opened at 100.75, and hit an intraday high of 100.79.

The index gained more than 0.1% yesterday, posting its fourth daily gain and a 2-week high of 100.93 points, due to increased demand.

In addition to profit-taking, the US dollar was weighed down today after fears over a liquidity crunch eased, alongside a strong recovery wave in most global stock markets.

Asian stock markets rebounded today, European stocks stretched their rally for the second day, and Wall Street posted strong gains yesterday, as the coronavirus spread started to show slowing signs in Italy, Spain, Germany and New York, which shows that the lockdown measures have payed off and started to slow the pandemic.