On Tuesday, the American currency had beaten a hasty retreat across the board, as a reopening of global economy alongside growing hopes of a potential vaccine for the pandemic outbreak had overshadowed concerns related to Sino-US tension, eventually heightening up demands of the riskier assets.
Besides, as investors’ appetite shored up for the riskier assets, sending the global stock indices higher and resulting in a late-rally of the commodities with natgas futures wrapping up the day more than 4.5 per cent higher, the US Dollar index (DXY), measured against a basket of six major currencies on an average had wrapped up the day down by 0.81 per cent to 99.00.
Citing statistics, on the day’s market wrap-up, the bloc’s single currency gained 0.79 per cent to $1.0980 against its American counterpart after an Ifo survey had revealed that the German exporters had rebounded in May following the catastrophes of March and April, while the safe-haven Japanese yen rose by 0.21 per cent 107.55 following approval of a second budgetary fund worth of more than $900 billion to recuperate the fiscal shrines of the pandemic.
In tandem, the British pound gained 1.25 per cent to $1.2335 against the US Dollar, while the commodity-dependent Canadian dollar surged by 1.38 per cent to $1.3748 in line with an affluent rally of the commodity futures.
Likewise, the Australian Dollar rose by 1.65 per cent to $0.6646 against its American peer.
Dollar retreats as major biotech firms jump on to pandemic vaccine race
Apart from the FX market which had experienced a broad-based sell-off of the American Dollar alongside an intransigent rally of emerging market currencies, benchmark Standard & Poor surged above 3,000 earlier in the day for the first time since March 5th following reveal of media headlines that the US pharmaceutical Merch & Co.
Inc. alongside US biotech corporation Novavax Inc. became the latest to join the race to test their pandemic vaccines on human. More importantly, in the Asia-Pacific trading hour, a Beijing-backed media was quoted Chinese President Xi Jinping as saying that Xi had lined up a number of potential vaccines against the pandemic and was prepared to offer them to any country that wanted to test them, while in the later part of the day, the Novavax Inc.
said in a statement that it had enrolled its first participant for a human trial, denting the US Dollar and leading to a strident rise in appetite for the riskier assets.