Dollar in the red after Fed measures
US, WASHINGTON (ORDO NEWS) — The dollar fell on Tuesday amid signs of weakening stringent funding conditions following US Federal Reserve measures to ensure dollar liquidity.
The Federal Reserve on Monday introduced a range of programs for large companies, households, and small businesses, citing the “huge difficulties” facing the economy due to the coronavirus pandemic.
“We seem to have come out of a phase where everything from stocks to secure assets like bonds and gold was sold,” said Koichi Kobayashi of Mitsubishi Trust Bank.
“The terms of dollar funding are somewhat softened compared to last week, although I would not say that everything is fine. While the Fed is pumping dollars, we still need to wait and see if this money will flow into all corners of the economy.”
The dollar index lost about 0.2% to 101.94 to 8.57 UTC.
The US currency weakened by 0.7% against the yen to 110.39 yen.
The euro added 0.5% to $ 1.0775, recovering from a fall to an almost three-year low in the previous session.
The pound also rose 0.5% to $ 1,1607.
Trading remained volatile, the Australian dollar rose 1.2% to $ 0.5904.
Markets are waiting for a series of data on business sentiment in Europe, which should be released today to get an idea of how the virus affects the real economy.
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