28 Jan 2021 / 05:06 H.
(Adds Fed meeting, quote, updates prices) By Saqib Iqbal Ahmed and Karen Brettell NEW YORK, Jan 27 (Reuters) - The dollar was boosted by safety buying on Wednesday as investors turned more cautious on worries about the economic impact of the COVID-19, and after the U.S. Federal Reserve expressed concerns about the pace of the economic recovery. Stocks and Treasury yields slipped while the safe-haven U.S. dollar drew buyers. There are a lot of concerns about the effectiveness of the vaccine roll out in the United States, said Minh Trang, senior FX trader at Silicon Valley Bank. Today is a solid risk-off day for sure. The Federal Reserve left its key overnight interest rate near zero and made no change to its monthly bond purchases, pledging again to keep those economic pillars in place until there is a full rebound from the pandemic-triggered recession. That has not happened, and the Fed in a policy statement flagged a potential slowing in the pace of the
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NEW YORK (Reuters) - The dollar drifted higher on Friday after three straight days of losses, and riskier currencies fell, as bleak non-U.S. economic data gave global equity markets reason to pause after another week of record highs.
FILE PHOTO: U.S. one hundred dollar notes are seen in this picture illustration taken in Seoul February 7, 2011. REUTERS/Lee Jae-Won
As a safe haven, the U.S. currency tends to rise in times of financial and economic stress that results in lower risk appetite.
The S&P 500 and the Dow along with U.S. Treasury yields were lower as well, suggesting a generally somber mood in financial markets.
The dollar fell against most currencies on Wednesday, as risk appetite held up on optimism about a massive stimulus package under the new Joe Biden administration that will likely bolster a U.S. economic recovery.
The Australian and New Zealand dollars were slightly lower on Monday, as a softening U.S. economic outlook turned investors cautious even as data showed China's economy grew at a faster-than-expected pace in the fourth quarter of last year.