U.S. dollar gains as steep global economic slump looms [Reuters] 01 Apr, 2020

The greenback rose against the euro, sterling and most other major currencies as selling in global shares highlighted growing risks from the pandemic that has shown little sign of easing. The dollar’s status as the world’s reserve currency makes it a natural safe haven, as evidence builds of a massive global economic downturn. “We saw broad dollar-buying flows into month-end, but today’s flows are more haven-like,” said Erik Bregar, head of FX strategy at Exchange Bank of Canada in Toronto. The game changer, he added, was U.S. President Donald Trump’s dire press briefing late Tuesday, where he warned Americans of “painful” two weeks ahead in fighting the coronavirus even with strict social distancing measures. White House coronavirus coordinator Deborah Birx displayed charts demonstrating data and modeling that showed an enormous jump in deaths to a range of 100,000 to 240,000 people from the virus in the coming months. “It feels like the U.S. is not doing enough to curb the spread,” Bregar said. In mid-morning trading, the U.S. dollar index was up 0.6% at 99.550 =USD. It remained below multi-year peaks reached last month, before the Federal Reserve pumped more dollars into the system. U.S. data showing private sector jobs lost for the month of March were much lower than expected, did not really change sentiment, as the survey was conducted in mid-March and did not really capture the full impact of the coronavirus. The ADP National Employment Report on Wednesday showed private payrolls fell by 27,000 jobs last month, the first decline since September 2017, after advancing by an unrevised 183,000 in February. Economists polled by Reuters had forecast private payrolls falling by 150,000 jobs in March. German and British factory output gauges on Tuesday slumped to multi-year lows, painting a similarly bleak picture to manufacturing data from Japan and South Korea overnight. European and U.S. equity markets tumbled in morning trading, following from falls in Asia. Analysts said coordinated action by central banks to boost dollar supply has helped calm extreme volatility, but money markets still need time to settle. The euro fell nearly 1% against the dollar, dropping to $1.0924 EUR=EBS. A slew of currencies - including the Australian, New Zealand and Canadian dollars, along with the South African rand - were down around 1% versus the greenback. AUD=D3 NZD=D3 CAD= ZAR= Sterling fared slightly better, last down 0.4% at $1.2370. GBP=D3. Against the safe-haven yen, however, the dollar was down 0.3% at 107.29 yen JPY=EBS. But yen strength may not last long as Japan is also reeling from the crisis. Our Standards:The Thomson Reuters Trust Principles.

More News

Lufthansa supervisory board unable to approve bailout package

27 May, 2020 Reuters

FRANKFURT (Reuters) - Lufthansa’s (LHAG.DE) supervisory board was unable to approve a 9-billion euro (8 billion pounds) bailout in light of cond ... Detail

Trump threatens to shutter social media companies after Twitter warning

27 May, 2020 Reuters

WASHINGTON (Reuters) - U.S. President Donald Trump on Wednesday threatened to regulate or shut down social media companies, one day after Twitter Inc ... Detail

Wall Street set for higher open as recovery hopes outweigh Sino-U.S.tensions

27 May, 2020 Reuters

Travel-related stocks, which were among the worst hit in the sell-off earlier this year, continued to outperform. United Airlines Holdings Inc (UAL.O ... Detail

Ralph Lauren posts bigger-than-expected loss as lockdowns hammer sales

27 May, 2020 Reuters

(Reuters) - Ralph Lauren Corp (RL.N) posted a bigger-than-expected quarterly loss on Wednesday as stores across the world that sell its jackets, coats ... Detail

Ryanair's holiday bookings surge, sees UK dropping quarantine

27 May, 2020 Reuters

Last week, Britain announced a 14-day quarantine from June 8 for all air passenger arrivals, including its own citizens, even as countries such as Ita ... Detail

Post Your Comments
Type your Comments / Review in the space below.
Verify Code