Yen soars, yuan and Aussie dollar decline as coronavirus concerns resurface
13.02.2020 - Petr Mazaylo
Yen soars, yuan and Aussie dollar decline as coronavirus concerns resurface

TOKYO- The yen recovered from three weeks of underperformance against greenback on Thursday. Upbeat activity followed after Hubei province in China reported an atrocious increase in the number of new coronavirus cases boosting markets and rallying investors to resort to safe-haven assets.

The Chinese yuan shed gains against the dollar as recent developments on coronavirus contagion posed risks for investors that the spread of virus still stands as a threat to the global economic forecast.

The Australian dollar AUD=D3, known to be a second resort for risk-exposed assets, plummeted with 0.19 loss t0 $0.6728. New Zealand dollar NZD=D3 sunk down with 0.27 setback to $0.6451.

On Thursday, Hubei reported a huge increase in new cases of coronavirus jumping from 1,638 up to 14,840 in a span of two days. In line with this, death rate jumped from 242 to 1,310.

Hubei’s health commission stated that the institution involved diagnosis using new method as the ambiguity of virus which originated from Chinese city of Wuhan last year and has been transmitted to 24 counties continues to drag markets for weeks.

“When you see numbers like this, you can’t help but move to risk-off trades, which means buy the yen and sell stocks,” said Ayako Sera of Mitsui Trust Bank in Tokyo.

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 Umarkets.com 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?