Dollar pulls back from 2-month high on profit-taking

The US dollar fell against a basket of major currencies Monday, on profit-taking from a 2-month high of 94.74 points hit on Friday, in addition to improved risk appetite amid hopes for a new stimulus package in the US.

The dollar index fell 0.5% to 94.15 points, after opening at 94.58, and hit an intraday-high of 94.64.

The index rose 0.3% on Friday, and hit its 2-month high of 94.74 points, on increased by buying momentum against a basket of major currencies.

The US dollar gained 1.6% during the past week, posting its third weekly gain in a month and the largest since March.

The biggest weekly gain in six months came after the greenback shined as the best alternative investment, due to concerns about the global economy after several governments tightened their lockdown restrictions to curb the spread of the coronavirus.

Following these developments, most global stock markets were hit by a broad sell-off move, which has sparked concerns over a liquidity crunch.

Hopes for a new fiscal stimulus in the US were renewed, after House Speaker Nancy Pelosi said on Sunday that a solution can be reached with the White House on another coronavirus stimulus plan, adding that she believes they can come to an agreement.