King Dollar climbs to three-year peak amid coronavirus; gold loses safe-haven appeal

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King Dollar climbs to three-year peak amid coronavirus; gold loses safe-haven appeal

On Wednesday, the 18th of March 2020, the American Dollar extends gains against almost all of the major currencies, while emerging market currencies alongside Sterling, New Zealand Dollar and Australian Dollar had hit their multi-year lows, as businesses alongside investors appeared to be seeking safety on American dollar.

Besides, as the US Dollar Index (DXY), measured against a basket of six major currencies on an average, shot up 1.69 per cent to 101.08 to touch its highest level since April 2017, the so-called safe-haven asset spot gold futures’ had tumbled terribly on Wednesday (March 18th), falling more than 2.70 per cent to $1486.10 per ounce amid growing demand of liquidity in these times of global health emergencies.

Meanwhile, referring to investors’ search for a safer source of liquidity, a senior market analyst at Western Union Business Solutions in Washington, Joe Manimbo said on Wednesday (March 18th), “In a similar vein to consumers emptying the shelves at grocery stores, investors and companies are treating the greenback the same way, gobbling it up given its highly liquid status.

” Citing statistics, on Wednesday’s (March 18th) market wind down, the Australian Dollar fell to a fresh 17-yr low of $0.5702 against the greenback, while the New Zealand Dollar had hit an eleven-year low figure of $0.5697.

Apart from that, the British currency faltered as much as 3.73 per cent to $1.16 to hit its lowest level since the “Flash Crash” of October 2016, while the safe-haven Japanese Yen alongside Swiss Franc had rounded off the day 0.4 per cent and 0.8 per cent lower respectively against the greenback.