Let’s check the market. The United States greenback export exposed that currencies fared particularly poorly.
On Wednesday, the Australian dollar sunk to a fresh 17-year low of $0.59215. Meanwhile, the New Zealand dollar hit a decade low of 0.5850 cents.
Against a strengthening greenback, only perceived safe-haven currencies managed to hold their ground. The safe-haven yen has risen around 0.2% to 107.42 yen. Meanwhile, the Swiss franc is up by a similar magnitude to 0.9598 francs.
Gunter Seeger is a senior vice president in investment-grade fixed income at New York asset manager PineBridge Investments. He said that it all stems from a shortage of United States dollars.
He added that people are very, very anxious.
Everyone is nervous about everything; about their job, about oil prices, about the virus, says the senior vice president.
Investors liquidated nearly everything for the cash. Thus, markets have crumbled this month. It drove up the cost of borrowing the dollar full and dollar’s value.
The United States
The United States dollar was last up nearly 0.3% against a basket of currencies. It occurred after the hit in earlier trade of an almost three-year high. Over the past two weeks, it has gained more than 5%.
Jane Foley is a senior FX strategist at Rabobank. She says that this is the story of a strong dollar. The action of the Federal Reserve was much better than nothing. But at the same time, the concern is about signs of when the crisis will end.
Jane Foley adds that everyone understands the shortfalls of central banks. They can’t physically get people back with the help of the shop’s doors.
Later, on Wednesday, both the Bank of England and the European Central Bank were due to hold United States dollar auctions. They are both closely watched. Switzerland’s central bank will also meet and can direct the further firepower of its economy.
This is the leading news for today.