Safe haven Yen, Swiss Franc extend losing streak; euro pummels

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Safe haven Yen, Swiss Franc extend losing streak; euro pummels

On Tuesday, the 4th of February 2020, safe-haven currency Swiss Franc alongside Japanese Yen, demands of which usually ramp up during times of geopolitical turmoil, slid for the second successive session in a row against a US dollar greenback as investors brushed aside concerns related to a coronavirus outbreak in China following People’s Bank of China’s (China’s Central Bank) prudent move to stabilize domestic market.

Aside from that, among other major currencies, Australian dollar and offshore Chinese Yuan gained on Tuesday (February 4th), as China’s Central bank had injected billions of dollars in to the Mainland Shanghai equity market to grapple with a grotesque investors’ optimism stemmed off the virus outbreak.

Meanwhile, referring to PBOC’s (People’s Bank of China) 1.7 billion stimulus on Monday (February 3rd) morning, a managing director at moneycorp North America, Thomas Anderson said on Tuesday’s (February 4th) market wrap-up, “It feels like the containment measures and getting more information about the virus have helped the market and so investors are not so worried about uncertainty.

I think people overreacted last week and now they’re unwinding that overreaction. China pretty much jumped into everything they needed to do to stabilize the market and it worked. ” Citing statistics, on Tuesday’s (February 4th) market round off, US Dollar greenback gained 0.5 per cent against its Japanese counterpart to 109.26, while the Swiss Franc fell 0.3 per cent against the American dollar to $0.9690.

Besides, euro shed 0.1 per cent against the US currency to wind up the day at $1.1040, as the US Dollar index (DXY) measured against a basket of six major currencies on an average ended up the day 0.1 per cent higher to 97.922.