Emerging market currencies tumble as the New Zealand dollar, the Australian dollar, and British pound slip. The euro supported. Versus the dollar, the yen gains.
Markets are staring at what is likely to be one of the worst economic contractions for decades. It is because the world is locking down to fight the coronavirus pandemic. Thus, on Wednesday, against riskier currencies, the dollar broadly gained.
Fresh selling in global shares is highlighting growing risks from the coronavirus that has shown little sign of abating. Thus, against New Zealand and Australian dollars, the greenback advanced.
New Zealand currency dropped 0.3% to $0.5945. Meanwhile, the Australian currency fell 0.35% to $0.6115. Nevertheless, the British sterling shed 0.4% to $1.2376.
With the Mexican peso falling more than 1% to the dollar to 23.960, emerging market currencies were hit harder. While, per greenback, the South African rand gave up 0.7% to 17.952. Moreover, most Asian currencies dropped.
Investors flocked to the safe-haven yen, while the greenback’s status as the world’s reserve currency makes it a natural safe-haven. Against the dollar, the yen gained 0.2% to 107.33 per dollar.
Against the greenback, the euro dropped 0.2% to $1.1015. Nevertheless, against most other currencies it gained. It happened because its vast liquidity is attractive at times of economic stress.
Masahiko Loo is a portfolio manager at Alliance Bernstein in Tokyo. He said that in his view, markets still have not fully priced in the damage from the coronavirus. Thus, some people always talk about V-shaped recovery.
He also added that Europe and the United States are hit by the first wave now. Nevertheless, in Asia, there can be more waves from the cases re-imported.
Against most majors, the greenback held beneath overnight highs. Greenback was below the multi-year peaks made last month. It was before the Federal Reserve pumped more dollars to calm down the market.
It is the leading news of the market.
Key Points: AUD/JPY broke below a rising wedge, signalling possible bearish momentum, with immediate resistance at 103.00 and support at…
Key Points EUR/JPY Rises to 168.25: Strengthened by robust Eurozone economy and steady ECB policy. Eurozone GDP Grew by 0.3%…
Key Points: Nio's shares hit 44.20 HKD, up 20%, with electric vehicle deliveries up 134.6% year-on-year to 15,620. BYD leads…
Key Points: Ethereum fell sharply from $3,355 to a low of $2,813, reflecting high volatility and sensitivity to market dynamics.…
Key Points Nikkei 225 slightly fell by 0.1%, while the Hang Seng index surged by 2.4%. USD/JPY increased slightly, highlighting…
Key Points: Gold prices rose on MCX India to ₹71,278/10 gm and COMEX US to $2,328/oz. The US Dollar Index…
This website uses cookies.