Further U.S. Fiscal Stimulus Would Likely Keep Dollar Strong

The prospect of further U.S. fiscal stimulus will help maintain a strong dollar, MUFG Bank says. “Overall, we continue to believe that looser fiscal policy has proved important in supporting a stronger U.S. economy recovery,” MUFG currency analyst Lee Hardman says. The U.S. Senate on Tuesday passed a $1 trillion bipartisan infrastructure spending bill. The bill now will head to the House of Representatives where it could face some opposition from lawmakers who have said they would withhold support until the Senate passes a separate $3.5 trillion package focused on social welfare policies. The DXY dollar index rises 0.1% to 93.1560, having earlier reached a four-month high of 93.1920.
Source: Dow Jones