Dollar climbs down as panic subsides, on course for biggest loss in decade

Dollar climbs down as panic subsides, on course for biggest loss in decade

27 Mar 2020 09:17 AM
 

The dollar is on track for its biggest weekly fall in more than a decade on Friday as a series of stimulus steps around the world, including a $2.2 trillion U.S. package, calmed a panic over a global recession following the coronavirus outbreak.

Data showing an unprecedented rise in U.S. jobless claimsunderscored the virus' devastating  impact on the economy, but subsequent rise in Wall Street shares raised hopes a torrent of selling in risk assets may have run its course for now.

The dollar dropped to 109.70 yen shedding 1.44% overnight while the euro also jumped 1.40% on Thursday and last stood at $1.1073.

The biggest mover among major currencies was sterling, which rose 2.8% overnight before giving up part of that gain in early Asian trade. The British pound last stood at $1.2292.

An easing in dollar funding conditions is helping to reduce demand for the dollar.  The number of Americans filing claims for unemployment benefits surged to a record of more than 3.28 million last week as strict measures to contain the coronavirus pandemic unleashed a wave of layoffs.

The focus stayed on an unprecedented $2.2 trillion stimulus expected to be approved by the U.S. House of Representatives on Friday.