NEW YORK (Reuters) – The dollar gained on Tuesday after U.S. President Donald Trump said he called off negotiations with Democrats on a new coronavirus relief package, putting the economic recovery in question and prompting a move to safe haven assets like the greenback.
Trump, a day after leaving the hospital for COVID-19 treatment, said he instructed his representatives to stop negotiating on a new fiscal stimulus bill until after the Nov. 3 U.S. election.
Stocks dropped and Treasuries rallied on Trump’s statement, which came via Twitter.
“This is just not good for the economy and that’s why we’re seeing a strong risk off move here,” said Edward Moya, senior market analyst at OANDA in New York.
The U.S. economic recovery is far from complete and could still slip into a downward spiral if the coronavirus is not effectively controlled and growth sustained, Federal Reserve Chair Jerome Powell said on