Dollar and yen gain as virus worries affect market mood
The dollar and Yen, as well as US and Japanese bonds, gained as investors seek for safe havens amid coronavirus concerns.
The World Health Organization said that cases of infected people who haven’t been to China might be the start of something bigger.
Coronavirus death toll is already at 1,016 in mainland China. Meanwhile, the number of new cases daily is slowing down.
The USD marked a four-month high against the Euro as investors stick to the world’s reserve currency.
The USD stood by a three-month high at $0.6378 against the New Zealand dollar, and at $0.6686 against the Australian dollar.
Westpac FX analyst Imre Speizer said that the market is resorting to USD as the United States shows good economic data, while New Zealand and Australian currencies are at risk.
China’s central bank has cut interest rates and flushed the market with liquidity to underpin the economy. However, with the magnitude of the outbreak, investors traded currencies linked to China and sought safe haven assets such as the dollar and the yen.
The yen last stood at a stable 109.75 against the dollar, but gained against other Asian currencies.
The New Zealand and Australian dollars both slipped 4% against the yen this year, while the Singapore dollar slid 3% in recent weeks.