US dollar grows amidst bad forecasts
US dollar is growing in European trading on April 15. The safe-haven currency is reinforced by new forecasts concerning the pandemic’s impact on the global economy.
At 0705 GMT the US Dollar Index was at 99.093, gaining 0.2%. EUR/USD was down to 1.0960, losing 0.2%. GBP/USD was at 1.2567, losing 0.4%. USD/JPY was at 107.10, losing 0.1%.
According to the World Economic Outlook report published by IMF, world’s GDP can reduce by 3% in 2020. This is the worst recession since the time of the Great Depression. French GDP is predicted to lose 8%. UK has stated that its budget deficit might surpass 100 billion pounds.
Other reports and forecasts warn of a grim possible future for the United States. Scientists at Harvard School of Public Health have warned, that the country might have to keep the social distancing measures in place until 2022 to deal with the pandemic for good.
US dollar also saw gains in trading against yuan. USD/CNY has gone up 0.2% and reached 7.0579 after the central bank’s enhancement of supportive measures. The institution has reduced lending facility rate to a new record low of 2.95%.