Let’s check the market. After three days of heavy selling pushed it to the lowest in almost five years, the dollar rose 0.93% to 0.9338. Data suggests that to weaken its currency, the Swiss National Bank is now ramping up its market interventions. The United States currency rose 0.45% to $1.3067 against the pound.
After Treasury yields climbed off record lows and the United States stock futures opened, the dollar gradually accelerated.
After the previous day’s drive, on Tuesday, in Asia, oil futures also bounced. Global markets tried to regain some composure. Nevertheless, many traders warned that recent turmoil has been so dramatic that risks are still tilted down.
On Monday, the plunge in crude prices was yet another jolt to financial markets. They were already reeling because investors counted the cots of mounting economic of a global coronavirus epidemic.
The United States
The yuan rose a tad to 6.9370 per dollar in the onshore market. Chinese officials are saying that the growth in the number of new cases of the coronavirus, which emerged last year in the central Chinese province of Hubei, is slowing.
Nevertheless, its rapid spread in the United States and Italy is likely to keep investors on edge.
The Federal Reserve stunned investors last with a surprise 50 basis point rate cut. Now money markets show that the Federal Reserve is likely to ease policy further in the future.
In a sign of underlying financing stress in the world’s largest economy, the Federal Reserve is also injecting cash into the banking system.
Expectations for Federal Reserve easing are likely to bring United States yields and the dollar back down. Nevertheless, the time being on Tuesday, the dollar got a brief respite.
After a mauling on Monday, the currencies of oil-producing countries also managed to rise.
Against the dollar, the Russian ruble rose 1.8%. which is the leading news of the market.