Dollar resumes rally due to cash investors fleeing

US, WASHINGTON (ORDO NEWS) — The dollar resumed its rally against major currencies on Thursday, as high volatility in the financial markets and fears of liquidity caused by the coronavirus pandemic led to the flight of investors into cash.

The pound sterling to 9.28 Moscow time decreased by 0.57% to $ 1.1547, trading near the minimum since at least 1985 to the dollar.

The Australian dollar fell 1.56% to $ 0.5677, earlier dropping to a 17-year low, while the New Zealand dollar fell 2% to $ 0.5628, trading close to an 11-year low.

The Reserve Bank of Australia (RBA) lowered interest rates for the second time this month, joining global central banks to help the economy amid the expanding effects of the coronavirus pandemic.

The euro rose briefly against the dollar and the pound after the European Central Bank launched an emergency asset buying program for 750 billion euros, but then the single currency lost most of its advantage and held at $ 1.0926.

“This is similar to what happened during the global financial crisis, when investors even sell what is usually considered as safe havens,” said Junichi Ishikawa, senior currency strategist at IG Securities in Tokyo.

In relation to the yen, the dollar strengthened by 0.56% to 108.66.

The liquidity crisis and the subsequent dollar rally in spot markets pushed down the currencies of emerging markets. Since the beginning of the year, the dollar has risen in price by 27% to the Brazilian real and by about 10% to the South Korean won and the Indonesian rupee.

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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.

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