TOKYO (Reuters) – The dollar was softer against riskier currencies on Tuesday on rising optimism that U.S. lawmakers could agree on new stimulus to blunt the economic impact of the coronavirus.

Risk appetite also improved after U.S. President Donald Trump left the hospital and returned to the White House following treatment for COVID-19.

“I think hopes of U.S. stimulus are the main driving force,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“As for Trump’s discharge, the impact is not clear-cut but it is seen as positive for risk environment to the extent that there are less worries about the White House getting caught in complete chaos and unable to make decisions,” he said.

The euro traded at $1.1788

, following a gain of 0.58% on Monday.

The pound changed hands at $1.2990

, tackling its resistance around $1.30, despite concerns about a no-deal Brexit.

The dollar advanced on the safe-haven yen to 105.77 yen

, near its highest levels in three weeks.

The dollar’s index against a basket of six major currencies <=USD> dropped to 93.422, touching its lowest level in two weeks.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin spoke by phone for about an hour on Monday on coronavirus economic relief and were preparing to talk again Tuesday, continuing their recent flurry of activity working towards a deal on legislation.

White House Chief of Staff Mark Meadows said there is still potential for an agreement among lawmakers in Washington on more economic relief, and that Trump is committed to getting the deal done.

However, the renewed efforts in Congress to reach an agreement on relief funds for the pandemic-hit economy has been complicated by the spread of the coronavirus among key policy makers including Trump.

The president returned to the

Soft commodities can be the most volatile sector of the commodities market as prices routinely double, triple, or halve in value during their pricing cycles. The path of least resistance for the prices of luxury commodities is a function of the weather and crop diseases in the world’s critical growing areas. However, the demand side of the fundamental equation reflects an ever-increasing addressable market for these products. The population of the world is growing by around 20 million people each quarter. Since 2000, the number of people inhabiting our planet has increased by approximately 28.1%, which amounts to over 1.686 billion people, according to the US Census Bureau. More people with more money consume more coffee, cocoa, sugar, cotton, and orange juice each day, which underpins the prices of these commodities. However, the outbreak of Coronavirus in 2020 weighed on all markets, and soft commodities were no exception. In Q2 and Q3, the sector made a comeback.

The composite of five soft commodities, sugar, coffee, cocoa, cotton, and frozen concentrated orange juice, posted an 8.79% loss in Q1. In Q2, it recovered by 4.24%, in Q3, it rose by 7.41%. Soft commodities were 0.26% lower through the first nine months of this year.

The dollar index moved 3.52% lower in Q3, which supported the prices of all commodities. In Q3, the Brazilian real edged marginally lower. Brazil is the world’s leading producer of three of the five commodities in the sector, including sugar, coffee, and oranges. The real did not significantly impact the soft commodity prices in Q3 as the exchange rate against the dollar hardly moved. The dollar is the reserve currency of the world and the benchmark pricing mechanism for most commodities, including those of the soft or tropical variety. However, the weather is always the most critical

By Tom Westbrook

SINGAPORE, Oct 2 (Reuters)The dollar drifted toward posting its softest week in more than a month on Friday, as revived hopes for a new U.S. stimulus package to boost the world’s biggest economy had investors seeking out riskier currencies.

Against a basket of six majors =USD, the dollar held near a one-month low in Asia and has slipped 0.9% this week, its largest weekly loss since late August.

The New Zealand dollar NZD=D3 made a fresh one-week peak of $0.6659, while the euro and Aussie held just below week highs made overnight.

Moves in morning trade were small, however, with signs of an impasse on Capitol Hill and the risk of disappointment at U.S. jobs data due later in the day holding investors back.

U.S. House Speaker Nancy Pelosi and Treasury Secretary Steven Mnuchin failed on Thursday to bridge what Pelosi described as differences over dollars and values.

Analysts view their talks as a last-gasp effort to secure relief ahead of the Nov. 3 election for tens of millions of Americans and business including U.S. airlines, which have begun furloughing over 32,000 workers.

“Markets surely remain susceptible to the lack of a deal this side of the election,” said National Australia Bank’s head of foreign exchange strategy, Ray Attrill.

The risk-sensitive Australian dollar AUD=D3 was last steady at $0.7182 after climbing as high as $0.7209 overnight. It has so far posted a weekly gain of 2.2%, its best since late August. AUD/

The Japanese yen on the other hand, a safe-haven currency that tends to gain during periods of uncertainty, barely moved this week, suggesting a degree of caution remains. The yen JPY= last traded at 105.55 per dollar.

Sterling had a bumpy overnight session, bouncing around on conflicting Brexit headlines before ultimately