European session review: USD weakens as Democrats push forward with Biden's $1.9 trillion COVID-19 stimulus plan

USD fell against its major rivals in the European session on Tuesday amid signs that the House Democrats were moving forward with a $1.9 trillion stimulus bill. 

The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, dropped 0.37% to 90.60, its lowest level since January 29.

The House Democrats unveiled a draft of the coronavirus stimulus package on Monday night, which includes $1400 stimulus checks with $75,000/year eligibility, a $400 per week unemployment benefit supplement, a $3600 child credit, funding to state and local governments and vaccine distribution among the proposals. This draft, however, could change over the next month-plus of negotiations. The White House Press Secretary Jen Psaki said that the stimulus plan probably would advance under a fast-tracked procedure Democrats could use to clear the package with just a simple majority vote in the Senate.

Some experts believe that a fresh round of the U.S. fiscal stimulus along with record low-interest rates in the country will weigh on USD in the coming months.