Dollar rises against commodity currencies as investors rush to safety

23.04.2020 - Korneychuk Evgeniya
Dollar rises against commodity currencies as investors rush to safety

The dollar rose against the currencies of oil producers on Thursday as a bounce in oil prices partly calmed investors amid a collapse in global demand.

The euro steadied against the dollar and the pound ahead of an EU meeting on economic response to the crisis. It traded at 1.0810 against the dollar and 87.72 pence against the pound.

The European Union may take a few months to agree on how to finance aid for economic recovery as disagreements remain, a bloc official said.

Analysts say that investors are rushing to the safety of the dollar as the pandemic is pulling the global economy into a depression.

The U.S. dollar climbed against the Canadian dollar, at C$1.4182. It rose to 24.5120 against the Mexican pesos and steadied at 10.8012 against the Norwegian crown.

Experts say that the market mood is affected by the uncertainty on how well EU governments will cooperate in financing the recovery.

The European Central Bank has agreed to accept junk bonds as collateral so banks can finance themselves. Investors also await the central bank’s fiscal response.

The dollar stood at 107.75 against the yen. The Australian dollar lost 0.3%, at $0.6304, while the New Zealand dollar dropped 0.25%, at $0.5938.

Risk disclaimer "Market Solutions Ltd – Suite 305 Griffith Corporate Centre P.O. Box 1510 Beachmont, Kingstown, St Vincent and the Grenadines is a financial services institution outside the European Union Area, which is subject to the supervision of the IFMRRC Certificate 0395 AA V0128 Trading in Forex/ CFDs and Other Derivatives is highly speculative and carries a high level of risk. It is possible to lose all your capital. 70% of trading deals can be unprofitable. These products may not be suitable for everyone and you should ensure that you understand the risks involved. Seek independent advice if necessary. Speculate only with funds that you can afford to lose. This Website may contain information in particular regarding financial services and products that could be regarded b a E.U. supervisory authority as an offer of financial services targeted in Europe. ESMA intervention measures do not apply to customers of Market solutions Ltd and it is your responsibility to choose a company which is most suitable for your trading needs. By clicking continue you confirm that you have read, understood and agree to the risk disclosures, terms of service, cash policies, privacy policies and this notice and that you are visiting this website on your own initiative, without any encouragement whatsoever from or Market Solutions limited." Cookies notification: “We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we assume that you are happy with it. Continue

Help with deposit?