The U.S. currency fell on Wednesday as the investors cautiously moved onto riskier currencies. The dollar has been under pressure since the Federal Reserve executed heavy measures to boost its supply.
The greenback fell by 0.16% to 107.05 yen, and it has lowered to $1.0994 per euro for a short period. However, the dollar managed to recover two days of losses against the sterling, rising to $1.2588.
Many analysts remain cautious so far. Although the dollar traded near a two-week low of 0.9597 against the safe-haven Swiss franc. That is another sign of improving risk sentiment.
There’d been a flood of money from the Fed, which is the backdrop behind market moves – stated Michael McCarthy, the chief market strategist at CMC Markets in Sydney.
He also added that Trump has made it clear that he wants to lift restrictions. Even though this is what the market wants to hear, the U.S. is nowhere near the all-clear when it comes to this virus.
Trump plans to speak with governors of all 50 states to authorize them to open their economies on time. U.S. president stated on Tuesday that he is close to completing a plan to end the coronavirus shutdown.
What about the Chinese Yuan?
The yuan fell to 7.0560 per dollar in the onshore market on Wednesday. After the People’s Bank of China cut the interest rate on its medium-term funding for financial institutions to record low pressure on the Chinese yuan eased.
China plans to release information on its gross domestic product for the first quarter on Friday. Furthermore, analysts think that China’s Central Bank will lower the country’s benchmark loan prime rate to lower financing costs for companies hit by the epidemic on April 20.
The New Zealand dollar also declined by 0.9% to $0.6052. And the Australian dollar fell by 0.9% to $0.6384, pulling back from a five-week high. The Aussie lowered after new data showed that Australian consumer sentiment plummeted down to a 30-year low in April.