Currently, the Norwegian crown is the worst-performing currency. The United States dollar is only down against the Japanese yen.
A day earlier, there was a plunge in oil prices. After it, investors sought a safe-haven. Thus, on Tuesday, the United States dollar rose.
On Monday, for the first time, the United States crude oil futures plunged into negative territory by sagging demand. It happened because of the novel coronavirus pandemic. Nevertheless, early Tuesday, they managed to scrape back into positive territory.
Oil-linked currencies like the Canadian dollar and the Norwegian crown were the worst-performing currencies of Tuesday, along with the crown of Sweden. The Swedish crown is a susceptible currency to the stability of the global economy.
Against the dollar, the Norwegian crown was down 0.7%. Moreover, against the greenback, the Canadian dollar fell 0.4% to 1.4211, a two-week low.
The Swedish crown was down at 10.07 by 0.5%.
European Currency and Dollar
The European currency was last down 0.3% at $1.0833.
Marshal Gittler is an analyst at broker BDSwiss. He said that markets contemplate the increased borrowing that will be necessary to fund the recovery from COVID-19. Thus, the euro is suffering. Moreover, to support their economies, which have been frozen by the lockdowns, European countries have been issuing relief.
The dollar was last trading down 0.2% at 107.40 against the Japanese yen. The Japanese yen is the ultimate safe-haven currency.
The United States Texas Intermediate crude for May delivery traded last -$2.51 per barrel. It was off a low of minus $40 hit in trading of New York.
On Tuesday, the May contract expires. The June contract that is more actively traded was down at $20.27 a barrel.
Shane Oliver is the chief economist and head of investment strategy at AMP Capital Investors in Sydney. He said that oil is off its lows. Nevertheless, he adds that a lot of companies are going to get hit, and companies can start to fail.
- Trading Instrument