UNITED STATES (OBSERVATORY NEWS) — The yen and the euro rose against the dollar on Monday due to increased expectations of the Fed to cut interest rates later in March to support the US economy amid the continued spread of coronavirus.
The Fed may have to more aggressively reduce the cost of borrowing in order to protect the economy from the effects of the rapid spread of coronavirus, which led to a fall in global stocks last week.
The Japanese yen was trading without sharp fluctuations at the level of 108.24 against the dollar against 9.13 UTC, rising to 107.00 earlier in the course of trading. Last week, it added 3.2% – the maximum since July 2016.
The euro rose slightly to $ 1,1044, previously reaching a monthly high of $ 1,1074. Last week, the single currency rose 1.7% – for a maximum of two years.
The Swiss franc was trading without distinct dynamics at 0.9641 after rising to a maximum of a year and a half at 0.9610 on Friday.
Reports of new coronavirus infections in the United States have hit confidence in the US economy, supporting the euro and other major currencies against the dollar.
Data from China’s PMI indices showed that the coronavirus epidemic provoked a record decline in business activity in February.
Nevertheless, the yuan, due to signs of a weakening epidemic in China, has stabilized at 6.9722 against the dollar in the offshore market, previously reaching 6.9663, the peak since February 12.
The Australian dollar, often seen as the proxy currency of the renminbi, also recovered, adding 0.22% to $ 0.6523 and moving away from the 11-year low of $ 0.64345 reached on Friday.
The pound was held at $ 1.2833, near the low of four and a half months of $ 1.2726 reached on Friday, and also near the minimum from October to the euro and the yen.
The sale previously spread to some emerging market currencies. The Mexican peso and the South African rand fell more than 1% at the start of trading on Monday, but then recovered losses.
The Turkish lira, which came under pressure amid the aggravation of the situation in Syria, reached record lows.
This article is written and prepared by our foreign editors writing for OBSERVATORY NEWS from different countries around the world – material edited and published by OBSERVATORY staff in our newsroom.
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