TOKYO (Reuters) – The U.S. dollar held onto gains against most currencies on Wednesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus prompted a shift to safer assets.
During the Asian session, the yuan will be in focus as traders watch to see whether Chinese officials’ efforts to slow the currency’s rise continue to have an impact.
The euro and British pound are likely to extend declines, analysts said, as a return of restrictions on economic activity in Europe and Britain to battle a second wave of coronavirus infections unnerves investors.
Moves are likely to be subdued as the U.S. presidential election looms on Nov. 3, but analysts said sentiment is leaning against riskier bets, which should support the dollar in the coming days.
“Many factors are pointing to more upside for the dollar,” said Masafumi Yamamoto, chief currency strategist at