US, WASHINGTON (ORDO NEWS) — The dollar may record the maximum weekly increase since the global financial crisis of 2008 due to the flight of investors into cash amid the coronavirus pandemic.
By 9.11 UTC, the dollar index against a basket of major currencies dropped 0.93%, but has grown by 3.7% since the beginning of the week.
The Australian dollar on Friday rose 2.13% to $ 0.5865. Pound sterling added 1.3% to $ 1,164.
The Japanese yen rose 0.6% to 110.05 per dollar.
Despite measures taken by central banks around the world, fears remain in the markets, so the dollar rally is likely to continue.
“People sell everything, and the main idea is that they only want cash,” said Stuart Oakley of Nomura.
“People only need cash, because in the end, people don’t know where they will get the next revenue from, and they have payments that they have to pay off. I don’t think that will change.”
Market sentiment remains gloomy due to news of the spread of the virus. An official in Tehran tweeted that a coronavirus kills one person every 10 minutes. In Italy, the military was called in to transport the dead from a crowded cemetery.
“We expect the dollar will be able to maintain its newfound stability for a few more months,” said Ray Attrill of NAB.
“The deeper the global recession, the lower the fall in AUD and NZD,” he said, with worst-case forecasts pointing at a minimum of $ 0.53 for the “Australian” and $ 0.45 for the “kiwi.”
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The article is written and prepared by our foreign editors from different countries around the world – material edited and published by Ordo News staff in our US newsroom press.