US Dollar Gains as Death Toll From Coronavirus Rises in New York, Spain

US Dollar Gains as Death Toll From Coronavirus Rises in New York, Spain

Posted Wednesday, April 8, 2020 by
Arslan Butt • 1 min read

The US dollar is making gains early on Wednesday as investors move back from riskier currencies and towards its safety even as markets remain cautiously optimistic about the improvement in the coronavirus situation in Europe and the US. At the time of writing, the US dollar index is trading around 100.20.

In the previous session, the US dollar had experienced its most severe decline against other major currencies in almost two weeks. This was brought on by expectations that the coronavirus pandemic was showing signs of leveling, especially in Italy.

For now, however, risk aversion is back in the markets amid worries that choppy trading could continue as the uncertainty about the situation still prevails. It is too soon for the latest reduction in numbers to be qualified as a trend, although the various lockdown measures being implemented around the world have helped bring down the surge in cases.

The market sentiment took a beating after New York recorded over 700 deaths in a single day even as the rise in the number of cases appeared to be leveling off. Meanwhile, Spain also recorded an uptick in death toll for the first time in five days, heightening the risk-off sentiment and supporting the safe haven appeal of the US dollar.

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