Left Menu
Development News Edition

FOREX-Dollar at two-month highs as resurgent coronavirus threatens economy

U.S. Federal Reserve Vice Chair Richard Clarida said on Wednesday that the U.S. economy remained in a "deep hole" of joblessness and weak demand and called for more fiscal stimulus, adding that policymakers "are not even going to begin thinking" about raising interest rates until inflation hits 2%. Other safe-haven currencies, including the Japanese yen and the Swiss franc, also held firm.

Reuters | Washington DC | Updated: 24-09-2020 13:34 IST | Created: 24-09-2020 13:25 IST
FOREX-Dollar at two-month highs as resurgent coronavirus threatens economy
Representative image Image Credit: ANI

The U.S. dollar reached a two-month high on Thursday as concern grew over the resilience of an economic recovery in the United States and Europe amid a second wave of coronavirus infections. The dollar benefited from another spike in coronavirus cases in Europe, which boosted its safe-haven appeal, while Federal Reserve policymakers called on the U.S. government to provide more fiscal support, fuelling a bout of selling in risky assets overnight.

Against a basket of six other currencies, the dollar edged up 0.1% to a two-month high at 94.50. It is up nearly 2% so far this week as economic momentum shows signs of fading. "Optimism on the recovery, optimism on the virus, and bets on stimulus were keeping markets well bid, and on all three of these issues, there has been a degree of disappointment this month," said John Velis, an FX and macro strategist at BNY Mellon.

Appetite for riskier assets soured after data on Wednesday showed U.S. business activity slowed in September and new restrictions to stem a surge in coronavirus infections in Europe hit the services industry. Some investors are watching the Australian and New Zealand dollars, which have come under pressure on growing expectations their central banks could deliver more monetary stimulus. A decline in commodity prices is expected to increase downside risks for both currencies.

The Aussie fell 0.45% to $0.7042, near its weakest since July 21. U.S. Federal Reserve Vice Chair Richard Clarida said on Wednesday that the U.S. economy remained in a "deep hole" of joblessness and weak demand and called for more fiscal stimulus, adding that policymakers "are not even going to begin thinking" about raising interest rates until inflation hits 2%.

Other safe-haven currencies, including the Japanese yen and the Swiss franc, also held firm. The British pound swung between gains and losses but held above $1.27 before an announcement of Britain's plans to protect jobs and employment later in the day.


TRENDING

OPINION / BLOG / INTERVIEW

New farm bills in India: Focusing on farms or farmers?

... ...

Kenya’s COVID-19 response: Chaos amid lack of information

Confusing numbers and scanty information on how effective curfews and lockdowns have been in breaking transmission have amplified coordination and planning challenges in Kenyas response to COVID-19. Without accurate data, it is impossible t...

Farkhad Akhmedov: Calculating the price of impunity from the law

In insistences such as the battle over the Luna, Akhmedov has resorted to extreme legal machinations to subvert the High Courts decision and keep his assets from being seized. ...

Guinea’s elections hearken back to the autocracy and violence of its past

... ...

Videos

Latest News

Ratnaafin: a prodigious financial services provider secures NBFC & Insurance broking licenses

Ahmedabad Gujarat India, October 26 ANIPRNewswire Geared up for the next phase of major expansion, prodigious Ratnaafin has secured the mandatory license to operate as a non-banking financial corporation NBFC from the Reserve Bank of India ...

Accor, Hard Rock and Gordon Ramsey's Hell's Kitchen setting the benchmark with My Menu

My Menu a digital menu platform for restaurants, bars, clubs, and pubs to take contactless orders and accept payments, making menus more accessible and restaurants becoming COVID-19 compliant overnight. With over 300 plus hotels and 3000 p...

American jailed for attempt to overthrow Vietnam govt back in California

A U.S. citizen sentenced last year to 12 years in a Vietnamese jail for attempting to overthrow the state, has been released and returned to his home in California, a family spokesman told Reuters on Monday. Michael Nguyen, who was born in ...

Accomplished entrepreneurs of multi-speciality chain of dental clinics in healthcare

Chennai Tamil Nadu India, October 26 ANIBusinessWire India Chennai-based dentists and entrepreneurs Dr Senthil Prasad and Dr Mir Ali Reza are the co-founders of the leading dental chain 32 dental care in Tamil Nadu. Under their leadership t...

Give Feedback