American Dollar skyrockets amid growing outcry over liquidity on coronavirus pandemic



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American Dollar skyrockets amid growing outcry over liquidity on coronavirus pandemic

On Tuesday, the 17th of March 2020, the American Dollar index (DXY) measured against a basket of six major currencies on an average had reported its steepest intra-session gain since 2016, as companies alongside investors appeared to be seeking safety on the world’s most liquid currency amid havoc-scale economic slowdown due to a caustic wave of coronavirus pandemic.

In point of fact, US Fed had slashed interest rate to near-zero on Sunday (March 15th) in an emergency move to make the American dollar more available to businesses and lending institutes, while the BoJ (Bank of Japan) had injected its largest dollar-denominated fund in to market since the era of great financial depression, however, panic-driven money markets across the globe continued to show stress against the greenback.

Aside from that, as the American currency has been experiencing a panic-driven rally despite an unprecedented slowdown in retail sales in February alongside a steep slump in household expenses for wide-ranging products, the greenback gained 1.77 per cent against euro to $1.098 on Tuesday’s (March 17th) market wrap-up, while the US Dollar index (DXY) gained 1.53 per cent to round off the day at 99.50.

Besides, followed by the reveal of a heavier-than-expected contraction of Chinese economy last month that stoked frets of a global-scale recession, Australian Dollar, a critical indicator to Chinese economy fell as much as 2.42 per cent to $5969 against its American counterpart, its lowest level since 2003, while the safe-haven Japanese Yen shrugged off 1.82 per cent against the US Dollar to 107.78 Yen.