The price of the dollar witnessed about 0.2% for the first time after a wave of losses that lasted for 6 consecutive days today, removing the euro from its peak in 5 months.
According to Reuters news agency, the yuan disregarded in its foreign dealings the Chinese central bank reduced the ratio of the mandatory reserve of banks by what might pump liquidity by about 115 billion dollars, and it is expected that the transactions will remain meager until next Tuesday when most European countries return to open their markets after the Epiphany holiday next Monday. .
But most dealers will be relieved that the dollar was able to skip the holiday period in which liquidity decreased without a crisis of scarcity in the money markets, some people feared, but persistent fears of a repetition of what happened last January, which witnessed a “flash crash” due to a huge selling wave to stop losses In the midst of meager transactions due to holidays.
It seemed that Japanese individual investors had started a holiday in Tokyo on city centers in the yen and high-yielding currencies such as the Turkish lira, and such movements in the yen usually cause sharp swings in the dollar as well, but dealers are probably better prepared than last year.
“There has been some talk of a possible shortage in the dollar, but US prices have not changed, and Federal Reserve officials have been in control of the situation and have provided enough liquidity, so the price of the dollar against the yen is in line with the appetite,” said Laurie Halika, an expert on exchange markets at SEP in Stockholm. Overall risk. ”
The dollar fell about 2% at the end of last December against a basket of currencies, then its index began to rise slightly to 96.55, while the currency stabilized against the euro at 1.12095 dollars, a slight difference from the peak of early August of 1.1249, and ended the Euro 2019 almost unchanged, and closed the yuan Recording 6.9631 to the dollar in its strongest close since last August.
And stabilized in foreign market transactions after an initial decline after China reduced on Wednesday the proportion of mandatory reserves that banks must keep, which allows liquidity of 115 billion dollars to support the economy.
The Australian dollar fell 0.2% and the Canadian dollar approached its highest level in two and a half months, while the British pound also fell 0.2% after gains of 2.5% over the past December.
– –
