The dollar rises and fears of a second wave of “corona” lead to the search for a safe haven

The dollar was steadfast in its gains on Tuesday, as fears grew over a second wave of coronavirus infections that were undermining the global recovery and new signs of trade tensions that prompted investors to be cautious.

Analysts said US Federal Reserve officials played down the possibility that negative interest rates had boosted the dollar’s appeal, while fears of new HIV infections in China, Germany and South Korea were driving demand for a safe haven.

Initial steps by governments to end isolation measures were also a cause of uncertainty due to medical and financial risks.

The Australian dollar fell as much as 0.8 percent to its lowest level in a week at 0.6432 US dollars after China banned some Australian meat imports, but reduced losses after the Australian Trade Minister played down the matter and described a technical issue.

The rest of the other major currencies were hit, with the exception of the yen, which rose slightly after losing about 1 percent yesterday.

The euro fell from $ 1.08 for the first time in about a week, then recovered to $ 1.0802. The New Zealand dollar also compensated for its early losses and settled at $ 0.6083.

The US dollar fell about 0.3 percent to 107.36 yen. Sterling remained under pressure after a plan to slowly ease its isolation measures to $ 1.2337.

Against a basket of currencies, the US dollar hit a two-week high in Asia before settling at a week’s high of 100.27.


Share on facebook
Share on pinterest
Share on twitter
Share on linkedin
Share on email


Leave a Reply

Your email address will not be published.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

This site uses Akismet to reduce spam. Learn how your comment data is processed.