Mar 24 2020

Dollar ends mixed as Fed introduces new measures

 

The greenback matched its losses in Asia and Europe and ended in a mixed way on Monday amid the announcement by the US Federal Reserve of new measures to offset the recent economic impact caused by the global spread of the coronavirus pandemic. In a statement, the Fed said the effort, approved unanimously by members of the Federal Open Market Committee, was taken because "it has become clear that our economy will face severe disruption" due to the health crisis. "The first priority of our nation is to take care of those affected and to limit the spread of the virus." Against the Japanese yen, the dollar encountered renewed sales at 111.25 in New Zealand and fell to session lows at 109.67 at the opening of Europe due to lower yields from the US Treasury and equity futures before organizing a strong rebound to 110.88 on cross-selling in JPY. Despite a brief but brutal drop to 109.83 at the opening of New York after US lawmakers failed to reach agreement on the new stimulus package, the pair then rallied to a high of almost a month at 111.59 thanks to the renewed strength of the USD before easing.