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The positive developments in the stimulus package pressurize the dollar

 The price of the US dollar has continued its declining path for a long time, and the rate of decline of the dollar has accelerated during the past two weeks in conjunction with the positive developments regarding the stimulus package, and the US Federal Reserve’s decisions on monetary policy did not succeed in supporting the dollar this week, and the following are the most important influences on the dollar’s ​​movement this week:

US Federal Reserve and Dollar Decisions:

The federal decision did not succeed in the Fed’s decisions this week in supporting the US dollar adequately, and the US Federal Reserve Commission issued during its last meeting in 2020, today, Wednesday, its decision on interest by announcing it would keep the interest rate unchanged to stabilize at 0.25% levels, including In line with market expectations, the US Federal Reserve affirmed to continue the pace of bond purchases until achieving our goals, and that the Monetary Policy Committee will use all available tools to support the US economy, and the US Federal Reserve will continue to buy bonds until the inflation target is achieved and the best use of the currency market.

The US dollar and Corona developments:

Concerns exist in light of the outbreak of the Corona virus inside the United States and this puts pressure on the US dollar, as health data in the United States issued today, Friday, revealed that the country recorded about 233271 new cases of the new Corona virus during the past twenty-four hours, thus bringing the total number of Corona infections to 17,212,496 cases, and at the same time, the data showed that the United States recorded about 3,270 new deaths from the emerging coronavirus during the same period, bringing the total corona deaths to 310,782 cases until today.

The dollar and developments in the stimulus package:

The developments of the positive stimulus package negatively affected the US dollar and the latest developments related to it, the statements of US President Donald Trump, as Trump made positive statements to a large extent regarding the expected fiscal stimulus package agreement, and commented that the progress of the talks on financial stimulus between the US Congress and the government looks good, and from It is worth noting that the US government has submitted a proposal for the fiscal stimulus package of $ 908 billion, and US Senator Rob Portman said that US lawmakers may finish drafting the form of the fiscal stimulus package by next Saturday, and said that this stimulus package will be short-lived in anticipation of the scheduled government shutdown. Next Friday evening, and confirmed that the law will be ready by the end of the week.

The US dollar index was affected by these developments, as the index that measures the performance of the currency against about 6 major currencies is still at 90 points near its lowest level in 3 years, in light of the weak appetite for risk on the US currency.