US dollar sees gains as coronavirus spreads
The US dollar is seeing growth on April 8. The investors are returning to the safe haven, disappointed by the recent news about the coronavirus and the growing impact of the pandemic on Europe.
At 0700 GMT the US Dollar Index has gained 0.4% and ended up at 100.345. EUR/USD has tumbled down by 0.3% and ended up at 1.0857. GBP/USD has gone down by 0.3% to 1.2300. USD/JPY, meanwhile, has gone up 0.1% to 108.81.
Earlier traders have been comforted by the news, that the pandemic might be leveling off. The number of deaths and new cases of infection have remained relatively flat in the US, as well as in several other countries. However, then US has seen the largest increase in the virus death toll in a single day - 1800 people have died.
The situation in Europe is also encouraging traders to buy US dollars. The finance ministers of the European Union have not yet decided how will they help other member states, which have been most impacted by the virus. The most controversial issue seems to be the so-called “coronabonds”. Italy, France and Spain are supporting the spending project, while Finland, the Netherlands, Austria and Germany are opposing it.