Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar and Risk Currencies Down Amid Second Wave Fears

ForexJun 14, 2020 11:31PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was down on Monday morning in Asia, with the AUD and NZD suffering losses amid mounting fears of a second wave of COVID-19 cases.

China saw a fresh cluster of cases linked to Beijing’s Xinfadi market over the weekend, reporting 57 cases on June 13.

Neighbor Japan also reported 47 cases in Tokyo, with 27 of those cases traced back to nightclubs and bars that had recently reopened in the last phase of the city’s re-opening.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies slipped 0.22% to 97.118 by 11:21 AM ET (4:21 AM GMT).

U.S. Federal Reserve Chairman Jerome Powell is largely expected to reiterate the gloomy picture of the U.S. economy in his semi-annual policy report to the Congress later this week.

The USD/JPY pair was down 0.11% to 107.22 before a Bank of Japan policy meeting ending Tuesday.

The bank is not expected to announce any major changes.

The AUD/USD pair lost 0.48% to 0.6829 and the NZD/USD pair lot 0.36% to 0.6421. The two Antipodean risk currencies were the biggest casualties of the increased second-wave fears due to their close ties with the Chinese economy as well as global commodities.

“There’s talk that hedge funds and other short-term speculators came into the market early to sell the Australian dollar because of the new infections in Beijing...hopefully this will not be a big outbreak, and this downward move will not last long,” Yukio Ishizuki, foreign exchange strategist at Daiwa Securities, told Reuters.

The USD/CNY pair gained 0.10% to 7.0877 even after the release of Chinese industrial production and retail sales data for May that fell short of investor forecasts.

Industrial production rose 4.4% year-on-year and retail sales declined 2.8% year-on-year.

The GBP/USD pair fell 0.19% to 0.2517, with the Bank of England policy decision schedule due on Thursday.

The central bank is expected to increase its quantitative easing program by around GBP100 billion ($125.306 billion), with some forecasts predicting even larger increases as Britain’s economy slowly recovers from the effects of COVID-19.

The GBP also suffered losses after it was reported that Britain will not extend the deadline for trade talks with the European Union beyond the end of 2020, amid fears of the British economy descending into chaos if an agreement is not reached.

Dollar and Risk Currencies Down Amid Second Wave Fears
 

Related Articles

Dollar climbs as Evergrande uncertainty percolates
Dollar climbs as Evergrande uncertainty percolates By Reuters - Sep 24, 2021 4

By Chuck Mikolajczak NEW YORK (Reuters) - The dollar rose on Friday and was poised for its third straight week of gains against a basket of major currencies, as uncertainty over...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email