Downward outlook for dollar as headwinds greet 2021

Agreement on the long-awaited US coronavirus relief bill has created further downward pressure on the dollar at the start of a year in which analysts expect economic headwinds to devalue the greenback.

US president Donald Trump left it as late as possible to add his signature to the country’s coronavirus relief bill, approving it on December 27 after having threatened to refuse to do so as he sought to increase the size of cheques to be paid out to citizens from $600 to $2,000 – a rare point of agreement between him and Democrat lawmakers and something that Democrats are still seeking to enact via a separate proposal.

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