The dollar edged up on Monday as the U.S. and other countries are preparing to reopen their economies. Investors hope for quick global recovery from the crisis caused by coronavirus pandemic. The greenback rose by 0.28% to 106.95 yen in Asia, while it was steady at $1.0839 against the euro. The U.S. currency traded at 0.9712 Swiss franc as well.
On Friday, new data showed that the U.S. shed 20.5 million jobs in April. It’s the steepest plunge in payrolls since the Great Depression, but traders are willing to look past the negative economic numbers as they look forward to future growth.
Tohru Sasaki, the Head of Japan Market Research at J.P. Morgan Securities in Tokyo, noted that the bad news about the U.S. labor market was such as expected. However, people assume that economic activity will restart sooner rather than later in the United States and Europe.
Three important states for U.S. manufacturing, Michigan, California, and Ohio, are taking steps to allow factories and some businesses to resume work. The greenback has the potential to continue climbing up.
What about Sterling?
The sterling changed slightly versus the dollar and the euro after British Prime Minister Boris Johnson announced plans to ease coronavirus lockdown restrictions. It traded at $1.2419 on Monday in Asia. Meanwhile, the pound held steady at 87.32 pence against the euro.
On Sunday, Johnson announced a limited easing of coronavirus restrictions that have damaged much of the economy for weeks. He encouraged some people to return to work. The government wants the rest of the U.K. to take the same approach. However, the leaders of Wales, Northern Ireland and Scotland stated that they would stick with the existing “stay-at-home” message.
Johnson’s government has already faced criticism over its handling of the coronavirus pandemic. Britain’s death toll reached 31,855, which is the second-highest in the world, behind the United States.
Meanwhile, the Australian dollar recovered from an early fall to trade at $0.6538. The New Zealand dollar also held steady against its U.S. counterpart at $0.6140.