Dollar wobbles as investors grow anxious about pandemic toll on US economy – Gulf Today

Dollar wobbles as investors grow anxious about pandemic toll on US economy – Gulf Today

Gold soars to record high as virus fears lift safe-haven demand

Investors have reasons to worry about the US outlook as policymakers have so far struggled to clinch a deal to pump more money into the world's largest economy even as an expanded unemployment benefit, worth about $75 billion per month and accounting for nearly 5% of personal income, expired on Friday.

White House Chief of Staff Mark Meadows said on Sunday he was not optimistic on reaching agreement soon on a deal for the next round of legislation to provide relief to Americans hit hard by the coronavirus outbreak.

A growing US fiscal deficit to finance the stimulus prompted Fitch Ratings to revise the outlook on the United States' triple-A rating to negative from stable.

While the market has not shown immediate reaction to the downgrade, it still marked a sharp contrast with the European Union, which got a lift from Standard and Poor's decision to upgrade its rating outlook to positive from stable.

Sentiment on the euro has improved after European Union leaders agreed last month to a 750 billion euro economic recovery fund - while also taking on debt jointly in a major boost to regional cooperation.

The deal could be conducive to