Dollar falls after Fed bolster lending and coronavirus fears ease
April 10, 2020 @ 13:46 +03:00
The dollar was on course for a weekly loss on Friday as the U.S. Federal Reserve’s massive new lending program for small companies and signs of a slowdown in coronavirus infections reduced safe-haven demand.
The pound pulled ahead against the dollar and the euro as markets breathed a sigh of relief after British Prime Minister Boris Johnson left intensive care following his hospitalization for COVID-19 symptoms.
Currencies from oil-producing countries also held onto gains against the U.S. currency, but the outlook remains uncertain due to doubts that a deal between OPEC and its allies for a record oil supply cut would be enough to offset the collapse in global fuel demand.
Risk sentiment has steadily improved this week on tentative signs that the pandemic is slowing in U.S. and European hotspots, but some analysts remain cautious given so little is known about the virus and as many nations continue to grapple with the massive economic damage caused by the outbreak.
Against the euro, the dollar last stood at $1.0941, on course for 1.3% weekly decline.
The dollar traded at 0.9657 Swiss franc, down 1.1% for the week.
Trading was largely subdued in Asian hours as financial markets in Australia, Hong Kong, Singapore, Britain, and the United States are closed for the Good Friday holiday.
The Fed on Thursday announced a $2.3 trillion program to offer loans to local governments and small and mid-sized businesses, the latest step to backstop the U.S. economy as the country battles the coronavirus crisis.
The Fed has also slashed interest rates to zero, restated quantitative easing, and increased dollar liquidity to combat a shortage in money markets, leaving the dollar in the grip of bears in the spot market.
Dollar falls after Fed bolster lending and coronavirus fears ease, CNBC, Apr 10