On Tuesday, the 10th of March 2020, the US Dollar index (DXY) measured against a basket of six major currencies on an average had sharply rebounded following a havoc-scale plunge on Monday (March 9th), as investors’ risk-appetite had stepped up over hopes that the global policymakers could soon launch a cascade of wide-ranging stimulus such as long-term debts at ultra-low interest rate alongside fiscal injections amid a vigorous outbreak of Covid-19 which had been keeping the traders on their toes over the past few weeks.
On the contrary, several analysts were quoted saying that the latest rebound of American currency would likely to be short-lived amid mass-scale disruption in supply chains due to the virus outbreak, while an energy price war triggered by Saudi against the US Shales and Russian Crude had wobbled the outlook further.
Citing statistics, on Tuesday’s (March 10th) market wrap-up, the US Dollar Index gained as much as 1.09 per cent to round off the day at 96.26, while euro tottered by 1.4 per cent to $1.1292 against its American counterpart from a three-month peak of $1.1495 reached earlier on Monday (March 9th).
Apart from that, the American currency gained 1.5 per cent against the safe-haven Swiss Franc to $9388, snapping a three-day long losing streak which had pushed the US Dollar nearly a five-year-low figure against the Swiss currency this week, while the British currency lost 1.6 per cent against the US Dollar to wind down the day at $1.2910.
More importantly, as FX market volatility had nearly doubled up since late-February, alluring a number of short-sellers to enter in to the currency market, the safe-haven Japanese yen tumbled as much as 2.7 per cent against its American counter to wrap up Tuesday’s (March 10th) market at 105.10 Yen per US Dollar.