The U.S. dollar softened on Wednesday, hitting a one-month low against a basket of major currencies, as investors awaited the outcome of the fiscal stimulus talks and as coronavirus cases continue to spike in Europe.

Broader risk sentiment was curbed by caution ahead of a Tuesday deadline to reach agreement on a U.S. stimulus package as well as the Nov. 3 U.S. presidential election.

Caution about the U.S. election outcome kept the U.S. dollar supported against other majors. Asia’s trade-exposed currencies inched higher on Monday as China’s economic data showing rebound.

The dollar was headed for its best week of the month on Friday, as surging coronavirus cases and stalled progress toward U.S. stimulus had nervous investors seeking safe assets.

The dollar and yen drew support on Thursday as rising COVID-19 cases and waning progress towards a U.S. stimulus deal unsettled investors. The EU and Britain were set to prolong Brexit talks past an original October deadline to try bridge stubborn gaps holding up a new trade agreement.

The greenback held on to gains as demand firmed for safe-harbor assets, as halted coronavirus vaccine trials and an impasse in U.S. fiscal aid stimulus talks soured risk appetite.

The dollar bounced back from a three-week low on Tuesday as market players bought it back, particularly against riskier peers, after Chinese authorities appeared to be trying to put a brake on recent rises in the yuan. Monday rally in U.S. stock limits the dollar gain, which curbed the liquidity demand for the dollar.

The dollar inched up in early Monday trade as riskier currencies slipped after negotiation on a U.S. stimulus package ran into resistance and as the yuan dropped after China’s central bank took a measure seen as aimed at curbing its strength.

The dollar drifted toward a weekly loss on Friday, while the Chinese yuan soared to a 2-and-a-half year high, as investors wagered on a Joe Biden presidency, job data and on more U.S. stimulus spending.

The safe-haven dollar and yen nursed losses on Thursday, after the revival of hopes for some U.S. spending improved investor sentiment and appetite for riskier currencies.

The dollar held gains against most currencies on Wednesday after U.S. President Donald Trump abruptly cancelled talks on economic stimulus with Democrat lawmakers, heightening demand for safe-haven assets.

The dollar was softer against riskier currencies on Tuesday as prospects for a fresh U.S. stimulus package appeared to brighten. Risk appetite also improved after U.S. President Donald Trump left the hospital and returned to the White House following treatment for COVID-19.