The US dollar has experienced a slight dip but continues to trade close to three-year highs against other major currencies as market focus remains on the economic impact of the coronavirus pandemic and increases the demand for cash. At the time of writing, the US dollar index is trading around 101.75.

In the previous session, the Fed unveiled more liquidity boosting measures when it announced unlimited QE and other efforts to support credit markets amid the ballooning financial crisis being driven by the outbreak of the virus. The US central bank has committed to buying corporate bonds, offering guarantees for providing direct loans to companies and figuring out ways to give credit directly to SMBs.

Shortly after the announcement, the US dollar weakened by around 0.3% but still held on to its preference in comparison to other currencies. The high level of uncertainty about the extent of the economic impact of the coronavirus continues to keep investors on edge and hesitant to make moves in financial markets.

US stock markets continued to slide lower over fears about the lockdown measures being enforced by the government and its potential impact on businesses as well as consumers. Markets received no clarity on the Trump administration’s plans for fiscal stimulus as the bill failed to move through the Senate on Monday, which further heightened the sense of uncertainty in US markets.