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The Dollar fell on Tuesday, with the Euro and the British Pound Sterling gaining strength on the back of news that European Union leaders have agreed to roll out additional recovery funds in the region. New hopes for a potential COVID-19 vaccine also benefitted other commodity currencies.
The Dollar Index lost 0.1% to 95.718 at 2:45 AM ET (0645 GMT), after having last traded at a four-month low of 95.687.
After four days of negotiation, leaders in the European Union have reached an agreement to roll out a stimulus plan amounting to a massive €750 billion for economies hit worse-hit by the COVID-19 pandemic. The stimulus comes with €390 billion in non-repayable grants and the rest in repayable loans.
The Euro was flat against the Dollar, trading at $1.1444 after it had reached a four-month high of 1.1469. The British Pound Sterling rose 0.2% against the Dollar, trading at $1.2687.
Meanwhile, the Japanese Yen rose against the Dollar by 1%, trading at ¥107.31 per Dollar.
Down Under, the New Zealand Dollar rose slightly against the Dollar, while the Australian Dollar rose 0.8% to $0.7039.
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