Forex AnalysesPolitical NewsStock BrokerTechnical AnalysisTrading with Capital Sands.

Dollar Regains Ground as Coronavirus Spreads Globally

By Ritu,

Capital Sands

The dollar regained ground against a currency basket on Monday as a surge in new cases of coronavirus globally, most notably in Italy, renewed concerns over the economic impact of the outbreak.

Authorities in Italy imposed a quarantine in the north of the country to try to halt what is the largest outbreak of the virus in Europe, with the number of cases jumping to above 150 on Sunday from just three before Friday.

in South Korea the number of infections has surged to more than 700 with seven deaths and Iran has confirmed 43 cases and eight deaths.

On Monday China reported only 11 new cases outside Hubei province, where the virus originated, indicating that the spread of the virus in the rest of the country has slowed.

Chinese authorities have been urging business to resume work in order to spearhead a recovery in the world’s second largest economy.

The Australian and New Zealand currencies remained on the back foot, with the Aussie hitting a fresh 11-year low overnight and the kiwi shedding half a percent.

Heightened risk aversion, which also saw stocks tumble and gold and bonds rise, offered some support to the traditional safe haven yen, but concerns over Japan’s virus exposure still weighed.

The dollar was trading at 111.39 per yen , down 0.2%.

“U.S. dollar assets provide relative attractiveness,” they wrote. “In fact, our economists forecast no impact on U.S. growth from Covid-19, with relatively few domestic incidents and a low dependency on China’s economy.”

Against a basket of currencies, the U.S. dollar index crept back toward an almost three-year peak touched last week, before soft economic data knocked it from its perch on Friday.

Related posts
Forex Analyses

Dollar Slips From One-Month High Ahead of Fed Statement

By Administrator_ India Capital Sands The dollar edged marginally lower in early European trade…
Read more
Forex Analyses

Dollar Down Over Higher-Than-Expected Inflation Data

By Administrator_ India Capital Sands The dollar was down on Friday morning in Asia after the U.S.
Read more
Forex Analyses

Bitcoin under pressure as comeback fades

By Administrator_ India Capital Sands Bitcoin fell 3% on Friday, giving up gains from the Asia…
Read more
Newsletter
Become a Trendsetter
Sign up for Davenport’s Daily Digest and get the best of Davenport, tailored for you. [mc4wp_form id="729"]

Leave a Reply

Your email address will not be published. Required fields are marked *