King Dollar softens as major Central Banks pledge to dollar liquidity

by   |  VIEW 715

King Dollar softens as major Central Banks pledge to dollar liquidity

On Friday, the 20th of March 2020, the American Dollar index (DXY) measures against a basket of six major currencies on an average retreated from a three-year-peak as six major Central Banks had pledged to certain measures to ensure dollar liquidity in the market, nonetheless pared some of its earlier losses at late afternoon trading following a usual profit-taking week-end sell-off in the global equity market.

As a matter of fact, the American currency had orchaestrated a draconian rally this week surging as much as 4.32 per cent to stage its largest weekly gain since the ages of great financial depression in 2008, while a swathe of currencies ranging from pound sterling to euro to emerging market currencies fell to a multi-year low as major Central Banks had injected trillions of dollars to weather a stormy wave of panicky sell-off in the equity and commodity markets.

Meanwhile, citing Friday’s (March 20th) US Dollar’s retreat an unexpected event, a strategist at Pictet Wealth Management, Frederic Ducrozet said on Friday (March 20th), “The enhancement of coordinated USD dollar liquidity operations on 15 March was already a significant step building on the experience of the Great Financial Crisis, but today’s shift to daily operations is unprecedented.

” Citing statistics, after rising as much as 1.03 to stage its highest figure since January 2017, the US Dollar Index ended the day down by 0.32 per cent to 102.65. Besides, on Friday’s (March 30th) market wrap-up, extending its three-day long losing streak, euro fell as much as 2.32 per cent to $1.0692 against the greenback, safe-haven Japanese yen tumbled 2.65 per cent to 110.85 per US Dollar, Australian dollar fell for tenth straight session in a row to wind up the day down by 0.83 per cent to $0.5734 against its American counterpart, while pound sterling was flumped 0.99 per cent to round off the day at $1.1464 against the greenback.