<p class="title">The dollar struggled at a one-week low on Tuesday as traders grew wary about the prospects for the greenback against the backdrop of a large US fiscal stimulus package.</p>.<p class="bodytext">Investors have pushed up the dollar in recent weeks as Democrats moved to fast-track President Joe Biden's $1.9 trillion COVID-19 relief package, but some analysts say massive fiscal spending coupled with continued ultra-easy Federal Reserve monetary policy will be a dollar headwind.</p>.<p class="bodytext">"The view on the effects the package will have on the US economy differ," Commerzbank strategists said.</p>.<p class="bodytext">"Whereas until recently the prospect of fiscal support caused positive reactions on the markets, the market no longer seems to be entirely certain about that any longer."</p>.<p class="bodytext">Having attempted to bounce in the previous session, the dollar weakened broadly against its peers as US Treasury yields softened from overnight highs.</p>.<p class="bodytext">The biggest beneficiary of the weakening dollar was cryptocurrencies with bitcoin rocketing above $48,000, building on a nearly 20% surge overnight after Tesla Inc announced a $1.5 billion investment in the digital asset.</p>.<p class="bodytext">The dollar index was 0.3% lower at 90.73 in early London trading, having dipped to 90.603 for the first time since Feb. 1.</p>.<p class="bodytext">Disappointing US jobs data on Friday knocked the wind out of a two-week run that had lifted the dollar to a more than two-month high of 91.6.</p>.<p class="bodytext">The euro rose 0.2% to $1.20775 on Tuesday, up from a two-month low of $1.9520 touched Friday.</p>.<p class="bodytext">The British pound revisited its highs since May 2018, climbing to $1.3784 in Asia. It last traded up 0.3% at $1.3774.</p>
<p class="title">The dollar struggled at a one-week low on Tuesday as traders grew wary about the prospects for the greenback against the backdrop of a large US fiscal stimulus package.</p>.<p class="bodytext">Investors have pushed up the dollar in recent weeks as Democrats moved to fast-track President Joe Biden's $1.9 trillion COVID-19 relief package, but some analysts say massive fiscal spending coupled with continued ultra-easy Federal Reserve monetary policy will be a dollar headwind.</p>.<p class="bodytext">"The view on the effects the package will have on the US economy differ," Commerzbank strategists said.</p>.<p class="bodytext">"Whereas until recently the prospect of fiscal support caused positive reactions on the markets, the market no longer seems to be entirely certain about that any longer."</p>.<p class="bodytext">Having attempted to bounce in the previous session, the dollar weakened broadly against its peers as US Treasury yields softened from overnight highs.</p>.<p class="bodytext">The biggest beneficiary of the weakening dollar was cryptocurrencies with bitcoin rocketing above $48,000, building on a nearly 20% surge overnight after Tesla Inc announced a $1.5 billion investment in the digital asset.</p>.<p class="bodytext">The dollar index was 0.3% lower at 90.73 in early London trading, having dipped to 90.603 for the first time since Feb. 1.</p>.<p class="bodytext">Disappointing US jobs data on Friday knocked the wind out of a two-week run that had lifted the dollar to a more than two-month high of 91.6.</p>.<p class="bodytext">The euro rose 0.2% to $1.20775 on Tuesday, up from a two-month low of $1.9520 touched Friday.</p>.<p class="bodytext">The British pound revisited its highs since May 2018, climbing to $1.3784 in Asia. It last traded up 0.3% at $1.3774.</p>