Yen and Euro Skyrocketed. What About Other Currencies?

Yen and Euro Skyrocketed. What About Other Currencies?

The last days were very turbulent for stocks, equities, and currencies. Most of them plummeted down after the pandemic fear caused panic in investors and traders. The markets ended the last session in the red. The investors hit the risk-off currencies once more.

As a result, the Japanese yen soared, hitting new highs. The currency gained 9.4% in a dozen trading days. But policymakers are concerned in Japan, because the yen’s rally may cause other economic hardships for the country. The exporters are observing the trade closely.

Meanwhile, the number of infected by the coronavirus surpassed 107,000 across the world. The cases are increasing, causing more economic disruptions.

The oil prices fell by 30% over the last days. Paul Mackel, head of emerging markets FX research at HSBC in Hong Kong, stated that this fall in the oil price came at the worst time. According to him, volatility across assets is overshadowing any silver lining from a fall in the oil price.

Oil prices’ fall caused massive sell-offs in oil exporters’ currencies. The Mexican peso and the Russian rouble each fell as much as 6% against the dollar. The Canadian dollar decreased by 1.6% to 1.3640 per dollar, its lowest point since 2017. And the Norwegian krone lowered by 3%.

Meanwhile, the Aussie fell versus the yen by 6% at an 11-year low. But it rebounded shortly from its drop to $0.6311, at last trading at $0.6540. The Kiwi wasn’t far with more than 7% losses.

The Euro Skyrocketed. What About the U.S. Dollar?  

The euro rose by 1% at $1.1408, while the Australian and New Zealand dollars were down close to 2%. The U.S. dollar, on the other hand, dropped to a 17-month low against a basket of currencies. It lowered by 3% against the yen to 101.58.

The dollar declined against the euro on Monday as the oil prices’ collapse combined with coronavirus fears drove U.S. yields at the lowest levels.

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