Dollar firms as coronavirus cases surge, yuan drops

17.07.2020 - Petr Mazaylo
Dollar firms as coronavirus cases surge, yuan drops

The dollar firmed against its peers as concerns that a resurgence of the coronavirus will restrict economic activity lifted the safe-haven demand for the U.S. currency.

The yuan suffered declines in the past three weeks as the diplomatic tensions between the United States and China worsened.

The euro was supported by hopes that EU officials will accede to the proposed fiscal stimulus at a meeting later on Friday.

Some investors are pointing out the troubling signs that the surge in coronavirus cases in the United States is endangering its economy. Meanwhile, the intensifying U.S.-China conflict kept a risk-off sentiment.

The dollar traded at 107.24 against the yen in Asian trade. The euro steadied at $1.1381 and rose slightly to 90.60 pence per pound.

The pound sat at $1.2560, while the dollar stood at 0.9460 on the Swiss franc.

Several U.S. states have reimposed lockdowns as infections continued to jump. On top of that, the Trump administration is considering banning travel on all members of the Chinese Communist Party to the United States.

This week, the United States put pressure on China over its territorial claims, civil liberties, and access to technology.

In onshore trade, the yuan fell to 7.0041, its biggest drop since June.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from umarkets.ai or Market Solutions limited." Cookies notification: We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Read more. Continue
×

Help with deposit?