The dollar neared its biggest gain in a week since the 2008 global financial crisis, even with a weakened rally, as the pandemic drove investors to cash and damaged the world’s financial plumbing.
The dollar hiked 3.7% against a basket of currencies as investors sold stocks, commodities, bonds, and gold in exchange for cash.
The Australian dollar rose 1.7%, to 0.5839 against the dollar. The pound gained 1.3% to $1.1636, after recovering from a 35-year low. The yen was up 0.6%, to $110.05.
However, signs of turmoil in the financial system, despite central banks’ efforts to inject dollars, investors expect a reversal.
California issued an order to its 40 million residents to stay at home as confirmed cases jump to 13,000 in the U.S.
Ray Attrill, NAB head of FX strategy, said that the USD might maintain its status for a few more months.
The dollar’s rise in recent weeks had been astounding, causing the Australian dollar to lose nealry 30%.
Investors’ rush for the dollar was seen in the bond market, where liquidity was rare.
In an attempt to ease the strain, the Fed launched a discount dollar funding facility to additional nine central banks.
The Dollar fell to two-year lows on Friday, heading to its lowest decline in 10 years as concerns mounted over the economic recovery of the U.S. amid a second resurgence of the COVID-19 pandemic. The Dollar index plunged to 92.777, on course ...
The dollar was briefly lifted on Thursday after the U.S. Federal Reserve offered no concrete clues about its next course of action, while investors hoped for an easy policy as the coronavirus resurgence stalled economic recovery. The dollar ...
Asian stocks advanced on the prospect of ultra-easy monetary policy as the U.S. Federal Reserve kept interest rates near zero. Fed deemed it necessary to salvage the ailing economy, dragging the dollar down to a two-year low. The target range ...
On Wednesday, European stocks rose slightly after mixed earnings reports. However, the new wave of the coronavirus outbreak kept investors cautious while they also wait for the U.S. Federal Reserve’s announcement. The Stoxx Europe 600 ...
The dollar sat near two-year lows on Wednesday as the United States struggled to control the coronavirus outbreak, breaking hopes for a fast economic recovery. The gloomy outlook for the U.S. economy is expected to urge the Federal Reserve ...