The dollar had heavy losses against the Swiss franc, the euro, and the yen. Afterward, on Tuesday, the dollar steadied as it pulled ahead, supported with hopes from United States economic stimulus and a bounce of Treasury yields.
United States President Donald Trump said that the White House would hold a news conference on Tuesday. The meeting will be about economic measures against the coronavirus outbreak. After that, the greenback started to grin higher as United States stock futures rose.
Steve Mnuchin is the United States Treasury Secretary. He also confirmed that the White House would meet with Bank executives this week. It will be in a sign that the United States government is preparing for rolling out more measures. Measures are for softening the blow from the spread of the flu-like virus.
Analysts are saying that it is very early to call a bottom in the dollar, however. On Monday, it was pummeled after a price war between Russia and Saudi Arabia. The price war triggered the biggest daily rout in the oil price since the 1991 Gulf War.
Rodrigo Catril is in Sydney a senior FX strategist at National Australia Bank. He said that expectations for coordinated policy response are something that evolves, and ultimately that might help.
Nevertheless, he adds, that the short term the dollar is driven by the expectations for United States Federal Reserve easing.
Pulling back from the lowest in more than three years, the dollar rose 1.79% to 104.10 yen.
Against the major crosses, such as the Australian dollar and the euro, the yen also wobbled. It happened after officials of the Bank of Japan indicated their readiness for ramping up stimulus if needed before a policy meeting next week.
The greenback rose 0.42% to $1.1383 against the euro. Nevertheless, on Monday, it fell to its lowest in more than a year against the common currency.