adminThe dollar rebounded yesterday after huge losses against the yen and the euro, as investors turned hopeful that policymakers would introduce co-ordinated stimulus to cushion the economic impact of the coronavirus outbreak.
The moves helped reverse some of Monday’s gyrations, but at 104 yen per dollar the Japanese currency was not back above the 105 seen before this week.
The dollar started to recover as US stock futures rose and bond yields gained, following US President Donald Trump’s announcement that he would hold a news conference y about economic measures in response to the virus.
Analysts said it was too early to call a bottom in the dollar, which plunged on Monday after a price war between Saudi Arabia and Russia triggered the biggest daily rout in oil prices since the 1991 Gulf War and Treasury yields dropped further.
Against a basket of currencies, the dollar rose 1,01 percent to 95,88. It rallied 2,2 percent against the yen to 104,6, considerably higher than Monday’s 101,18 low.
The yen also fell against the euro and the Australian dollar, after Bank of Japan officials indicated they were ready to ramp up stimulus if necessary, before a policy meeting next week. – CNBC.
Online Reporter