The U.S. dollar tumbled down on Tuesday after a short rebound a few days ago. The stocks and currencies lowered sharply on Monday as the pandemic fear spread. Investors hoped that the authorities would take some measures to help the futures recover. Such assumptions, coupled with the U.S. president’s statement, caused the dollar’s rally, but it didn’t last long.
On Wednesday, the dollar declined further against other safe-haven currencies, such as the Japanese yen and Swiss franc, as the coronavirus concerns amounted. U.S. equity futures collapsed along with U.S. bond yields in early trade in Asia as well. Several currencies ended in the red. Most traders preferred to stay on the sidelines even after risk assets recovered more or less on Tuesday.
The greenback dropped by 0.6% against the yen, last trading at 104.98 yen. Meanwhile, the Swiss franc rose by 0.25% to 0.9369 francs per dollar. The euro was steady at $1.1304. It jumped by 0.21% so far in Asia.
Liquidity is very thin currently as there are very few orders in the market, and most of them seem to come from algorithm players – noted Yukio Ishizuki, the senior strategist at Daiwa Securities. He added that trade would probably remain volatile for the time being.