US Senate passes $484 billion coronavirus relief package

Early Wednesday morning in Asia, the US Senate passes $484 billion coronavirus (COVID-19) relief package to help small businesses, fund hospitals and availing more tests of the pandemic.

Details suggested by the CNBC mentions that the measure injects another $310 billion into a key loan program designed to keep employees on small company payrolls. The initial $350 billion in the so-called Paycheck Protection Program, created as part of the $2 trillion rescue package passed last month, dried up last week. It is unclear how many firms have actually received the money.

The new also said, “the bill passed Tuesday allocates $60 billion for small lenders as part of the small business aid program. It puts another $60 billion toward Small Business Administration disaster assistance loans and grants. It includes $75 billion in hospital relief and $25 billion for coronavirus testing.”

After the passage, US Senate Majority Leader McConnell said, “I’m proud of Congress’s new bipartisan agreement. I am just sorry that Democrats shut down emergency support for the main street in a search for partisan ‘leverage’ that never materialized.”

The bill now goes to the House for voting, expected to be out on Thursday.

FX implications

After the news, the market’s risk-off sentiment seems to have paused, which in turn stopped the US dollar from its further upside. As a result, the USD/JPY drops from 107.80 to 107.70 following the news.