USD rallies to two-week highs against JPY, EUR, GBP and CHF
The USD gained on most major currencies even despite better coronavirus updates domestically and globally.
The USD/JPY (大口） rallied to a two-week high at 15:00 SGT on Monday 06 April, even as coronavirus death rates across global hotspots showed signs of slowing down into the new week.
The greenback touched ¥109.382 briefly, before dipping back under ¥109.000 to begin Tuesday 07 April’s session.
Safe-haven appeal of USD in tact for the near-term
The dollar’s rise against the Japanese yen ‘notably’ reflected its demand among investors ‘even as funding pressure had somewhat eased with the series of measures put in place by central bankers’, IG Asia market strategist Pan Jingyi wrote in a note.
And amidst all the current market volatility and uncertainty created by coronavirus concerns, as well as ongoing expectations for dismal economic data, the greenback’s safe-haven appeal is likely to keep growing ‘in favour against most majors and Asian currencies alike in the near-term’, Pan adds.
With the Japanese government reportedly in the final stages of approving a US$990 billion stimulus package, and Prime Minister Shinzo Abe set to announce a state of emergency for Tokyo and six other prefectures, the USD/JPY will remain one to watch in the coming days.
Buy long or sell short on the USD/JPY and other major forex pairs by trading CFDs and other instruments via IG's market-leading platform. Start today by opening an IG account.
US dollar strengthens against euro, pound and franc
The US dollar also rose against several other G10 currencies on Monday, including the EUR, GBP and CHF.
The EUR/USD hit €1.07683 – its lowest level since 25 March, while the GBP/USD fell to £1.21656, with Swiss francs trailing the dollar at US$0.97974, following a week of steady climbing.
The dollar has been gaining steadily since mid-March, when the US government struggled to approve a US$2 trillion coronavirus stimulus package, among a slew of other negative pandemic-related government updates, including the reduction of interest rates to near zero.
Last Thursday 02 April, the dollar received another boost when oil prices went up after US President Donald Trump said the price war between Saudi Arabia and Russia are on track for a near-term resolution. This had helped to ease job loss concerns in the energy sector, which had spill-over effects on the rest of the US economy.
Read also: Why did the USD rise to an 11-year high against the SGD?
The equity markets have also been reflecting the general improvement in investor sentiments, with the S&P 500 and Dow Jones Industrial Average indexes soaring over 7% respectively on 06 April – in what was the best Monday session in over a month.
For now, the USD’s upward momentum appears to have ‘stalled’ as risk appetites returned on the back of more positive Covid-19 headlines in the US, according to UOB FX analysts.
The US dollar index rose to 100.685 from 100.576 on Monday.
IG is a world-leading online trading and investments provider for thousands of financial markets. Buy long or sell short on the EUR/USD, GBP/USD and more by trading CFDs or spread betting via IG's market-leading platform. Start today by opening an IG account.
This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.
Start trading forex today
Find opportunity on the world’s most-traded – and most-volatile – financial market.
- Trade spreads from just 0.6 points on EUR/USD
- Analyse with clear, fast charts
- Speculate wherever you are with our intuitive mobile apps
See an FX opportunity?
Try a risk-free trade in your demo account, and see whether you’re onto something.
- Log in to your demo
- Take your position
- See whether your hunch pays off
See an FX opportunity?
Don’t miss your chance – upgrade to a live account to take advantage.
- Get spreads from just 0.6 points on popular pairs
- Analyse and deal seamlessly on fast, intuitive charts
- See and react to breaking news in-platform
See an FX opportunity?
Don’t miss your chance. Log in to take your position.
Live prices on most popular markets
- Equities
- Indices
- Forex
- Commodities
Prices above are subject to our website terms and agreements. Prices are indicative only. All share prices are delayed by at least 15 minutes.
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
