Sat, December 03, 2022

U.S. Dollar, Japanese Yen and Swiss Franc Continue to Grow

U.S. Dollar, Japanese yen and Swiss franc continue to grow

The investors rely on the U.S. Dollar and Japanese Yen as the safe-haven assets. The demand for these currencies is growing due to the China virus outbreak. As a result, the dollar, yen, and the Swiss franc increased on Monday, while the offshore yuan declined.

The Chinese currency began its downfall after the coronavirus spread from its 11-million city Wuhan. So far, it has killed 81 people, and almost 2,800 are infected. Traders prefer to take a risk-off approach while the danger of pandemic remains.

So far, Japanese yen benefited most from such a policy, growing to 0.3%. The dollar index also rose to 0.09%. Juan Perez, the senior foreign exchange trader and strategist from Tempus noted that the dollar generally does strengthen as a result of anything that seems like it has the potential for physical chaos.

The analysts think that if the situation doesn’t improve, the dollar will maintain its superior position. But if the authorities manage to contain the virus outbreak or discover the cure, then all the bets are off. The dollar most assuredly will lose its safe-haven momentum. As the Chinese Premier Li Keqiang promised to “inspect and direct” efforts to control an outbreak in Wuhan, this is a real possibility.

The Australian dollar, which has links to the Chinese economy, dropped to its lowest level since December.

Financial markets closed for holidays in China, Australia, Singapore, and Hong Kong. Investors say that low liquidity worsens the situation further. The Chinese yuan collapsed from its five-month high, with the U.S. dollar gaining more than 2% against it. While the Australian dollar declined by 0.88% to $0.677.

Meanwhile, the euro lost against the yen with 0.3% to 120.08, reaching its two-month low. It also dropped against the dollar at $1.102, after the Ifo institute said that German business morale deteriorated unexpectedly in January.

YOU MAY ALSO LIKE

dollar

The Dollar Remained Stable The dollar held steady but was pinned near

The Optimism of Slowing Interest Rate Only Goes So Far

The all-important jobs report caused a lot of volatility near a key

Oil refinery

Oil Futures Prices Were Mixed Oil futures were mixed on Friday, buoyed

COMMENTS

Leave a Comment

Your email address will not be published.

User Review
  • Support
    Sending
  • Platform
    Sending
  • Spreads
    Sending
  • Trading Instument
    Sending

BROKER NEWS

Consob Blocks 4 More Illegal Trading Platforms

Italy’s financial market watchdog, Consob, has blocklisted four more websites for operating illegally in the country. The number of fraudulent blocklisted platforms reduced to 805 is the ongoing effort by authorities to reduce

BROKER NEWS

Broker News

Consob Blocks 4 More Illegal Trading Platforms

Italy’s financial market watchdog, Consob, has blocklisted four more websites for operating illegally in the country. The number of fraudulent blocklisted platforms reduced to 805 is the ongoing effort by authorities to reduce illegal