Yen Close to its Strongest Level, Yuan near its Weakest

Let’s check the situation in the market. The yuan quoted at 6.9813 per dollar in the offshore market. It was near its weakest since December 30. For Lunar New Year, this week, China’s coastal markets are closed.

The Japanese currency is close to its most active level since Jan. 8. The yen held steady at 109.01 per dollar.

Due to the growing risk aversion, Japan’s currency has risen for the past five trading sessions against the dollar.

Following a 0.86% increase on Monday, the dollar index against a basket of six major currencies little changed at 97.932.

The coronavirus has now spread to more than ten countries. However, outside of China, no fatalities have reported yet.

In 2002-2003 there was an outbreak of SARS (Severe Acute Respiratory Syndrome). It was another coronavirus that broke out in China and killed nearly 800 people in a global pandemic.

Close to a three-month low, the Australian dollar traded at $0.6754. The New Zealand dollar fell on Monday to its lowest since mid-December. After it, it quoted at $0.6541.

Yuan and Other Currencies

With China, both countries have extensive trade ties. Thus, education and tourism are especially vulnerable to disruption from the virus.

Close to its most active stage since December, the United States dollar quoted at $1.1021 per euro.

The United States central bank officials are scheduled to meet on Tuesday and Wednesday. They will most probably reiterate the FED’s desire to keep rates unchanged at least through this year.

On Thursday, the Bank of England will announce a policy decision. Moreover, many analysts say it is too close.

Against the dollar, the pound was little changed at $1.3064 and 84.32 pence per euro.

BoE policymakers made dovish comments. Thus, it has fueled some expectations for monetary ease, but improving economic data has cast doubt on this view.

Per dollar, in the offshore market, the yuan was quoted at 6.9813.

It is leading news of the market for now.