A rebound in the dollar faltered on Tuesday as political wrangling over a U.S. relief plan and the gloomy economic outlook kept investors shy of the currency.
Despite an encouraging slowdown in new virus cases and better-than-expected manufacturing data, investors are reserving judgment on whether a U.S. economy with 30 million people out of work can really lead the world’s recovery.
Top Democrats in Congress and White House negotiators on Monday said they had made headway in talks on the latest coronavirus relief bill, though an expired $600-per-week unemployment benefit remains a sticking point. But it came with a warning as output remains far below pre-virus levels and the employment index was below forecasts, at a still contractionary 44.3.
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