Forex News

Dollar Backed by Virus Fear, Awaits Word on Stimulation

Dollar holding gains against most of the currencies earlier on Friday, worrying about the recovery of the pandemic, is beginning to restrain the economic activities, flown into the U.S. currency. The EURO was backed by the hopes of the European officials to agree on revenue incentive measures at the upcoming meeting that starts later on Friday.

Prices of Yuan dropped the most in the past three weeks due to the invariable increase in the consular frictions between China and the United States. The investors have recorded some disturbing signs according to the recent data, that states, there is a persistent escalation in the virus spread that is a significant threat to the U.S. economy.

Talking about the same, Minori Uchida, the head of global market research at MUFG Bank, quotes,
“The dollar looks like a good haven now because of worries about a return to coronavirus lockdowns, but I worry that the dollar will start to lose this status if long-term Treasury yields continue to fall.”

The dollar was valued at 107.22 yen till Friday, followed by a 0.3% gain in the previous session.

This week the United States has declined the pressure on China for a dispute over civil liberties, technological access, and claiming territories. The euro has taken center stage later on Friday, since European Union Leaders are supposed to meet in Brussels, striving to overcome the differences raises on the proposal of the incentive package. Currently, the stakes are high due to damage caused after the virus outbreak. A sudden rise again in the coronavirus cases has led to shut down cities and countries; the leaders fear the upcoming struggles of the economy and labor market.

Marvin Rowe

Marvin Rowe joined CapitalBay.News as a news writer. He covers updated information regarding the latest forex news, trading strategies, commodities reports & events in his articles.

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