U.S. Dollar Recovered But What About Japanese Yen?

The Dollar Recovered But What About Yen?

The U.S. dollar rebounded after the last few weeks lows on Tuesday. It traded at record lows against the Japanese Yen and other currencies before. However, the dollar rose by 0.2% to 95.613 against a basket of currencies. It rallied against the yen at 104.28, increasing by 1.9%, which is considerably high than Monday’s 101.18 low.

Furthermore, it gained 0.4% versus the euro at $1.1385 per euro. The dollar also rose against the Swiss franc by 1.2% at 0.9361 on Tuesday. However, it dropped down to 0.9299 francs after three days of heavy selling pushed it to its lowest point in nearly five years. Against the pound, the U.S. currency increased by 0.5% to $1.3067.

Before recovering, the dollar suffered huge losses against the euro, the Swiss franc, and the yen. It collapsed on Monday after a price war between Russia and Saudi Arabia triggered the biggest daily rout in oil prices since the 1991 Gulf War.

But the currency started gaining after U.S. President Donald Trump stated that he would hold a news conference on Tuesday about economic measures in response to the virus. Traders hope that policymakers would offer some stimulus to soften the economic impact of the coronavirus outbreak worldwide.

Steve Mnuchin, U.S. Treasury Secretary, noted that the White House would meet with bank executives this week to roll out measures for coping with the virus.

What about the Japanese yen? 

While the dollar hit high, the Japanese currency lowered significantly. It traded at 104 yen per dollar at last. The yen struggled against the other major currencies, too, the euro and the Australian dollar among them.

Meanwhile, commodity-linked currencies that fell on Monday following the collapse in oil prices also recovered from record lows. The Norwegian crown increased by 1.6% versus the euro at 10.796. The Canadian dollar gained 0.3% at C$1.3658, and the Russian rouble added 3.6%, with the Mexican peso rising by 0.5%.

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