US Dollar strengthens as eurozone rescue bill uncertainty drags on

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US Dollar strengthens as eurozone rescue bill uncertainty drags on

On Thursday, the 23rd of April 2020, the American Dollar bolstered against the bloc’s single currency in a choppy session that witnessed a waft of wild swings after a video conference summit of EU leaders aimed at setting up a bailout fund for the eurozone businesses grievously hurt by the pandemic, had failed to reach a conclusive agreement, while the US Dollar had wrapped up the day 0.42 per cent higher against its eurozone counterpart to $1.0775, however, the US Dollar index (DXY) measured against a basket of six major currencies had rounded off the day almost flatlined at 100.40 after hitting an intra-session high of 100.69, the index’s highest level in two weeks.

As a matter of fact, the German Chancellor Angela Merkel had signalled earlier on Thursday (April 23rd) that Berlin was prepared to pledge to a recovery package worth of 2 trillion euros, however, she wanted to a see a concrete plan on how the relief bill would be spent, while the French President Emmanuel Macron was quoted saying the hardest-hit regions in Europe by the Pandemic would require fresh fiscal aid, not just loans.

Meanwhile, as the EU summit had ended with sheer disagreement over the size and shape of the relief fund, Merkel was quoted saying that the bloc’s economies might have to face off further backlashes, if its member countries had continued to fail to yield a respond to the “exceptional shock” stemmed from the pandemic crisis.

As beforementioned, followed by the reveal of sheer uncertainties on rescue packages in the eurozone, the bloc’s single currency had shrugged off 0.42 per cent further on Thursday (April 23rd). Citing statistics, on Thursday’s (April 23rd) FX market closure, the American Dollar shed 0.34 per cent against the Canadian dollar to $0.7062, 0.33 per cent against the British Pound to $1.2334 and 0.68 per cent against the Australian dollar to $0.6324, following a strident upsurge of crude oil futures’ prices, while the safe-haven Japanese Yen ended up the day almost flatlined at 107.74 per Dollar and the offshore Yuan gained 0.11 per cent to $0.1412 against its American counterpart.