Yen firm, riskier currencies wobble as policymakers grapple with pandemic

Yen firm, riskier currencies wobble as policymakers grapple with pandemic

17 Mar 2020 09:15 AM
 

The safe-haven Japanese yen held largely firm on Tuesday, while risk-sensitive currencies struggled to stay afloat as coordinated moves by central banks failed to quell investor trepidation over the spreading coronovirus pandemic.

Global risk assets were routed over the past several days,with turmoil engulfing many markets on worries the outbreak and draconian containment measures could trigger steep recessions in major economies.

As a result, trading in most markets including foreign exchange is driven more by loss-reduction and other position unwinding to reduce risks or make up for losses, rather than fresh bids.

The dollar traded at 106.33 yen bouncing back from Monday's low of 105.15, but still down 1.6% so far this week, The euro last stood at $1.1176 little changed after wild gyrations on Monday.