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Dollar Strength After the Euro Plummeted

The dollar is stronger today after being supported by the decline in the euro, while concerns increased about the impact of the Covid-19 infection in Europe.

The dollar was 0.1% higher against a basket of six other currencies at 96.153, well below its 16-month high of 96.266.

USD/JPY rose 0.2% to 114.22, GBP/USD fell to 1.3448, and AUD/USD rose 0.3% to 0.7253.

On Wednesday, the Fed will release the minutes of its November meeting in which Fed policymakers decided that the U.S. economy is strong enough to begin winding down its pandemic-era asset purchase program.

EUR/USD fell 0.2% to 1.1265, its lowest level in 16 months. Austria became the first country in Western Europe to impose a renewed nationwide lockdown to combat the COVID-19 virus.

Europe has once again become the epicenter of the pandemic. In Germany, the largest economy in Europe, there is another lockdown. In Belgium and the Netherlands, there were riots because of the imposition of additional restrictions.

USD/TRY fell 0.3% to 11.1960 after the central bank cut interest rates again despite rising inflation.

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