Dollar and Yen Holding Firm as Safe Havens, Yuan Struggles

Let’s check the market. Yen and Dollar are holding firm as safe havens.

The worries concerning the spread of coronavirus had investors heading for safe harbors. Thus, on Tuesday, Japanese yen and the United States dollar were in demand, along with the bonds of both countries.

The WHO (World Health Organization) said overnight that the spread of cases among people who have not been to China might be a spark that will become a more significant fire.

In mainland China, Coronavirus has killed 1,016 people. On Monday, the Chinese health officials said that nevertheless those mentioned above, there is a drop in the number of daily new cases.

The dollar is seen as a haven. It is owing to its position as the world’s reserve currency. Against the euro, it stood by a four-month high at $1.0910. The greenback also rose against a euro-heavy basket of money at a four-month top of 98.832.

Dollar and Others

Per the New Zealand dollar, the greenback touched a three-month high of $0.6378. Dollar, per Aussie, was not far above the decade peak of $0.6657 hit on Monday. Today it stood at $0.6686.

Imre Speizer is a Westpac FX analyst. He said that it had been helped out by a lot of things. The analyst added that the coronavirus hitting has money going into the United States dollar. Lately, there has been a good run of economic data in the United States. It is another support. The vulnerable currencies are the commodity countries like New Zealand and Australia.

China’s central bank is moving to support the economy by flushing the market with liquidity and cutting interest rates. But the coronavirus impact and extent of spread are still unknown. Thus, investors have dumped currencies exposed to China for yen and dollars.

Thus, the yen is relatively stable against the dollar. It last was at 109.75 yen.

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