The dollar eased as risk appetite improves and stocks rallied globally. Some investors scale back bets on a rebound in the greenback, evaluating the disappointing U.S. jobs data and the new COVID-19 stimulus bill that yet to be approved.

The dollar headed for its best weekly gain in three months on Friday, lifted by growing confidence that the U.S. economic recovery and vaccination progress will outpace global peers. U.S. nonfarm payroll figures due later is closely watched.

The dollar traded higher on Thursday as pessimism about the U.S. economic outlook receded before the release of important data on the jobs market. Foreign exchange markets looked for clues to their next move, possibly from the U.S. jobs report on Friday.

Dollar moves higher as U.S. lawmakers moved closer to approving President Biden's $1.9 trillion COVID-19 aid bill and as investors looked to a widening disparity between the strength of the U.S. and Europe’s pandemic recoveries and vaccine roll outs.

The dollar eased as risk appetite improves and stocks rallied globally. Traders meanwhile are trying to evaluate as U.S. President Joe Biden and Republican senators are set for a series of negotiations later today regarding the new COVID-19 support bill.

The U.S. dollar took a breather from its descent, with investors taking cheer from U.S. economic data wasn’t as bad as feared and as concerns eased around hedge funds selling long positions to cover shorts. Problems in some vaccine rollouts weighed on sentiment.

The greenback held it stand against riskier currencies, with pandemic recovery hopes getting a boost as the IMF upgraded its forecast for 2021 global growth, while the markets also awaited on comments from Fed Chair Jerome Powell later today.

The U.S. dollar steadied on Tuesday as rising coronavirus cases and doubts over the speed and size of U.S. stimulus tempered traders’ upbeat mood, while major pairs were trapped in a tight range as markets awaited the Federal Reserve's Wednesday meeting.

The U.S. dollar stabilised on Monday after a recent decline as fresh worries about the coronavirus and the global economy prompted investors to hang on to the safe-haven currency. Traders also are awaiting on the U.S. monetary policy holds later this week.

The dollar was headed for its worst week of the year on Friday, as investors cheered in the Joe Biden administration by buying riskier currencies and refreshed bets that a pandemic recovery could push the greenback lower. The euro gains support after the ECB's announcement.

The dollar on back foot as on Thursday as optimism that a massive U.S. stimulus package under the new Joe Biden administration will bolster growth sapped demand for safe-haven currencies, while the European countries are struggling to contain the pandemic.

The U.S. dollar slips on Wednesday and the euro gains as investors’ mood brightened in the wake of a better-than-expected Eurozone economic data and big spending talk from U.S. Treasury Secretary nominee Janet Yellen. U.S. President inauguration speech is watched for details on the country’s aid package.