Dollar holds gains overnight against most major currencies
The U.S. Dollar held overnight gains against most major currencies on Wednesday amid a rise of U.S. yields and piling fears of the economic impact of the coronavirus pandemic had investors retreating to the Greenback.
The British Pound as well as the Japanese Yen attempted to recover at its best efforts but only managed to regain a fraction of ground lost.
The safe-haven Yen slid up by 0.3% at 107.37/USD while the Pound inched up 0.5% at 1.2108/USD. Meanwhile, the Euro held at 1.1000/USD. Commodity-sensitive currencies such as the Australian Dollar and the New Zealand Dollar plummeted below $0.60.
Most assets had fallen below from its value a week ago after the economic crisis triggered a global sell-off for the Dollar.
The yield on benchmark U.S. 10-year Treasuries climbed up by 34 basis points in a day, marking it the largest single-day rise since 2004. The high yield has also been attributed to traders owning Dollars, signaling a short supply – especially overseas.