Safety bid helps dollar due to coronavirus surge shakes confidence
29 June, 2020
A firm dollar maintained riskier currencies under great pressure in Monday, as a surge in coronavirus instances and the re-imposition of curbs to avoid its spread had investors worried a global economical recovery could be derailed even before it had taken root.
California ordered some bars to close on Sunday, following similar moves found in Texas and Florida, due to circumstances nationwide soar to record amounts each day. Washington state and the town of San Francisco have paused re-opening strategies.
That allowed the greenback to hang on to gains floor out the other day, and had riskier currencies including the trade-exposed Australian and New Zealand dollars parked toward the bottom of ranges they have held for many weeks.
The Aussie was last steady at US$0.6872 and the kiwi at $0.6420 - though equally are arranged for monthly benefits of roughly 3 percent as the rising risks to the global restoration have stalled instead of reversed their steep rally.
Against a basket of currencies the dollar was steady certainly not far below a four-week peak on Monday at 97.466. The safe-haven Japanese yen also placed at 108.18 per dollar.
“A double-dip US recession can be done if widespread constraints are re-imposed, resulting in a surge in the dollar,” said Commonwealth Lender of Australia FX analyst Joe Capurso.
Source: www.thejakartapost.com
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