On Wednesday, the 11th of March 2020, the American dollar fell against the safe-haven Japanese Yen and Swiss Franc, while a steep plunge in the Wall St. had remarked an end of an eleven-year long gaining streak of Wall St. since the era of great financial depression in 2008, as Dow alongside S&P 500 both had confirmed a bearish market.
Meanwhile, amid such catastrophic outlook in the US equity markets, investors sought safety on safe-haven currencies such as Yen and Swiss Franc, ditching out riskier assets over fears that the coronavirus outbreak would push the US economy in to a recession much earlier-than-anticipated.
Nonetheless, despite ramifications against the safe-haven currencies, the US Dollar Index measured against the six major currencies on an average had recorded a gain of 1.49 per cent to 96.44, snapping a three-day long losing streak, as the Pound Sterling had lost ground against the American dollar after witnessing a number of side-way movements followed by BoE’s (Bank of England) surprise rate-cut aimed at coping up with a copious spread of coronavirus cases.
Meanwhile, referring to investors’ scepticism over US economy’s leadership which so far had been failing to contain the virus outbreak, a chief market strategist at Bannockburn Global Forex in NY, Marc Chandler said on Wednesday, “The lack of U.S.
leadership, both domestically and internationally, is not boosting investor confidence. ” Citing statistics, on Wednesday’s (March 11th) market wrap-up, euro ended up the day with little changes at $1.1274 against its American counterpart and the British currency shed 0.6 per cent to $1.2835 following BoE’s unexpected rate-cut, while Yen gained 0.9 per cent to 104.92 per dollar and Swiss Franc added 0.2 per cent to $0.9378 against the American currency.