New post
Riku Tanaka
April 6 21:22

U.S. Dollar Grows as COVID-19 Death Toll Stabilizes

U.S. dollar slowly climbed in Asia on Monday (Apr 6) as urban communities in the US that were hit hard by the COVID-19 contagion revealed a drop in fatalities throughout Saturday and Sunday.
However, Friday's unemployment report of over 700 thousand non-farm workers curbed investor projections as the financial damage from pandemic-actuated lockdowns gets increasingly evident.
The U.S. Dollar Index Futures that tracks the greenback against a basket of its monetary peers increased 0.12% to 100.795 by 10:40 PM ET (3:40 AM GMT).
The GBP/USD pair increased 0.13% to 1.1656 as Prime Minister Boris Johnson was admitted to a hospital on Sunday in order to run health tests.
The USD/JPY pair straightened out its prior slump, increasing 0.42% to 108.92 despite the fact that Japan is expected to announce a state of emergency later this week.
“When a head of state or government is stricken like this, it will cause concern for holders of sterling and sterling assets,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities, told CNBC.
“Coronavirus cases in Japan may not peak for another month, so the markets will think that now it’s Japan’s turn. A state of emergency is necessary, but this could be yen negative,” Yamamoto added.
Meanwhile, in Australia and New Zealand, the AUD/USD pair increased 0.38% to 0.6018 and the NZD/USD pair increased 0.07% to 0.5872.
The USD/CNY pair remained frozen at 7.0928 as Chinese exchanges are shut down today for an federal holiday.