The dollar is making gains in volatile trades and sentiment remains fragile

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Packages of US dollars in a photo from the Reuters archive.

TOKYO (Reuters) – The dollar offset some of its losses against the yen and consolidated gains against risk currencies on Tuesday during a volatile trading session, highlighting the fragility of confidence in the markets.

Liquidity was scarce in the market, and investors remained concerned despite concerted steps by central banks around the world but surprisingly failed to allay fears about the consequences of the spread of the Coruna virus.

The dollar rose 0.8 percent against the yen to 106.69 as it made gains against the euro, sterling, Australian and New Zealand dollars and most emerging market currencies.

Investors and companies are demanding the dollar as the situation turns worse, day after day. China recorded a new increase in the number of cases and Malaysia is preparing to implement isolation measures in light of more stringent moves in this regard in Europe and the United States.

The Australian dollar, which was severely affected by global growth due to the country’s association with primary commodities, fell 0.7 percent to a new low in 11 years at $ 0.6065.

The British pound is also under pressure due to concerns not only related to Britain’s exit from the European Union, but also because of its large current account deficit.

Sterling fell 0.4 percent and was trading at $ 1.2222, which is near the lowest level in five months, which recorded in the previous session, amounting to $ 1.2203.

Prepared by Salma Negm for the Arab Bulletin – Edited by Moataz Mohamed

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