2020.12.2921:48:00UTC+00Dollar Stays Weak Despite Paring Some Early Losses

The U.S. dollar was weak against most of its rivals on Tuesday, weighed down by a massive stimulus package signed by President Donald Trump.

The currency fell sharply in the Asian session after U.S. House of Representatives backed President Donald Trump's push for increasing the direct payments in the coronavirus relief package and sent the bill to the Senate.

However, it pared some losses as the session progressed following Senate Majority Leader Mitch McConnell, R-Ken., blocking an effort by Senate Minority Leader Chuck Schumer, D-N.Y., to unanimously approve the House bill.

The dollar index, which fell to 89.85, recovered to 90.01 by late afternoon, but was still trailing its previous close by about 0.36%.

The Euro and Pound Sterling, both gained in strength against the dollar earlier in the day, but gave up some points as the day progressed.

Against the Euro, the dollar was hovering around $1.2250, and against Pound Sterling, it was trading at $1.3500.

The Yen recovered after early weakness on Tuesday. A little while ago, it was trading at 103.56 a dollar.