King Dollar skyrockets to three-year high, slumps Yen’s safe-haven status

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King Dollar skyrockets to three-year high, slumps Yen’s safe-haven status

On Thursday, the 20th of February 2020, the US dollar index (DXY) measured against a basket of six major currencies had gathered further momentum and extended its rally to breach a three-year peak, wrapping up the day at 99.87 amid a fully fledged safe-haven appeal over coronavirus-related demand concerns, while a sharp fall of Japanese Yen against its American counterpart raised questions over its safe-haven status.

Aside from a robust gain of US Dollar index, the spot gold futures’ prices appeared to be holding on above a seven-year high amid a flight-to-safety response in the money markets across the globe. Besides, on Thursday’s (February 20th) market round off, the US gold futures’ prices ended up the day 0.5 per cent higher to $1,620.50 an ounce after hitting its highest level since February 2013 to $1,622.19 an ounce earlier on Thursday’s (February 20th) intra-day trading.

On top of that, as the US Dollar had gained as much as 2 per cent against its Japanese counterpart over the past couple of days to reach its highest level against Yen in nearly 10 months, calling in questions over Japanese currency’s safe-haven appeal amid a dovish BoJ alongside a jejune Japanese economy, an investment analyst at XM, Raffi Boyadijian said on Thursday’s (February 20th) market wrap up, “The strongest explanation (for the yen’s decline) is a widespread selling by Japanese asset managers amid growing fears about the health of Japan’s economy.

” Japanese Yen shrugged off 0.63 per cent against a stronger US Dollar to wind down Thursday’s (February 20th) market at 112.07 yen after drooling as much as 1.37 per cent on Wednesday (February 19th).