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Dollar falls as investors favour riskier currencies and asset classes

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Dollar falls as investors favour riskier currencies and asset classes

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The Us dollar also gained 0.44 percent on the safe haven yen. Tuesday's currency moves were in keeping with advances in oil and a 1.6 percent gain in MSCI's gauge of stocks across the globe.

Dollar falls as investors favour riskier currencies and asset classes
The US dollar fell in the early hours on Wednesday as investors favoured riskier currencies and asset classes. This is the third successive session when the greenback is under pressure.
The New Zealand dollar rose 0.8 percent on Tuesday, recovering from near a year low to last trade at $0.6757, and the pound gained 0.46 percent - its best day in a month - last trading at $1.3267.
The Us dollar also gained 0.44 percent on the safe haven yen. Tuesday's currency moves were in keeping with advances in oil and a 1.6 percent gain in MSCI's gauge of stocks across the globe.
The result was the dollar index, which measures the currency against major peers, was last at 96.441 down from as high as 96.994 last week when it was testing a 16 month high.
Market players struggled to point to a clear reason for the "risk on" mood, saying markets were struggling to assess the consequences of the Omicron variant of COVID-19, leading to unseasonable volatility.
Stocks sold off sharply on Monday and the dollar index had gained 0.7 percent on Friday.
While the weeks either side of Christmas are typically low in volatility for currencies and other asset classes, analysts at ING said, "This year some seasonal tendencies will be mixed with the Omicron variant threatening to force new restrictions and markets still processing a week full of key central bank decisions."
Last week Britain became the first G7 economy to raise interest rates since the onset of the pandemic, with the U.S. Federal Reserve also signalling plans to tighten in 2022 but the European Central Bank only slightly reining in stimulus.
Omicron infections are multiplying across Europe, the United States and Asia, causing countries across the globe to consider new curbs on movement and reimpose quarantine periods for incoming visitors.
But a Bloomberg report that the US Food and Drug Administration is set to authorise COVID-19 treatment pills from both Pfizer Inc and Merck as early as Wednesday may have helped the mood.
The euro was last at $1.1289 starting Wednesday up marginally, which would be its third successive session of gains.
In emerging market currencies, traders were bracing for another day of volatility for Turkey's lira, which closed up 6% on Tuesday, having been down as much as 8.6 percent and up as much as 18.5 percent.
Bitcoin was largely steady just below $49,000 after a 4 percent gain on Tuesday. Ether, the world's second-largest cryptocurrency, has also been gaining this week and was last just above $4,000.
-With agency inputs
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