US Dollar Strengthens Against Oil Currencies Amid High Uncertainty in Markets
Arslan Butt • 1 min read
Early on Thursday, the US dollar continues to make gains, especially against oil producing countries’ currencies, as a result of the massive volatility driven by the crash in crude oil prices earlier this week. At the time of writing, the US dollar index DXY is trading around 100.44.
The risk-off market sentiment remains in favor of the safe haven appeal of the US dollar as markets fear the upcoming recession in the global economy due to the coronavirus pandemic. Amid a state of heightened uncertainty, traders prefer to hold their assets in the form of dollars over any other instruments that are not considered as liquid.
Meanwhile, the euro is trading steady against the dollar over rising hopes for EU officials to unveil measures to support the economy in the wake of the coronavirus crisis. Later today, EU officials are expected to hold meetings and come to a possible decision on an appropriate economic response to offset the impact of the pandemic.