SINGAPORE CITY (SINGAPORE) – The greenback started the week by facing immense pressure from all corners. Intensifying China-US relations have added to concerns that the surging number of coronavirus cases could undermine the economic recovery.
During morning trade, the dollar dropped to a four-month low against the yen and a new 22-month trough on the euro at $1.1699.
The Antipodean currencies witnessed a marginal rise. Against a basket of currencies the dollar was at its lowest since September 2018.
Lack of support for the dollar comes amid the straining of Sino-US relations with consular closures in both countries.
There has been a broad re-evaluation of the euro’s value after member states agreed on a rescue package.
“The common factor is the ongoing decline in US yields,” said Ray Attrill, head of FX strategy at National Australia Bank in Sydney.
“The message from the end of last week is that deterioration in risk sentiment alone may not be enough to provide the dollar with any kind of meaningful, durable support,” he said.
“I suspect it’s going to take much more (deterioration in sentiment) to really bring the dollar’s reserve-currency safe-haven characteristics back to the fore.”
Despite the rise in coronavirus cases in the country, the Australian dollar took advantage and edged ahead climbing to $0.7120. The New Zealand dollar rose 0.3% to reach $0.6657.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field
