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Riku Tanaka
in
Forex
May 11 19:20

US Dollar drops after traders embraced reopening plans

The US dollar took somewhat of a fall in Asia on Monday morning (May 11), surrendering a portion of its earlier gains.
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The US Dollar Index which tracks the currency against a basket of six of its peers saw a drop of 0.04% to 99.725 by 11:25 PM ET (4:25 AM GMT).
The greenback rose in the early morning following some nations' announcements to ease lockdowns restrictions aimed at stemming the spread of the novel coronavirus pandemic, which supported trader sentiment for the currency. Three major US manufacturing states, Ohio, Michigan and California began implementing measure to resume factory operations as well as some businesses.
Late March US joblessness claims skyrocketed to over 30 million according to Thursday (May 7) data, while Treasury Secretary Steve Mnuchin cautioned that it's possible that the nation’s joblessness rate could already be as high as 25%.
“The bad news about the U.S. labor market was pretty much as expected, and people now assume that economic activity will restart sooner rather than later in the United States and Europe,” Tohru Sasaki, head of Japan markets research at J.P. Morgan Securities, told CNBC.
The USD/JPY pair rose 0.16% to 106.82 after Japan released news of a subsequent spending plan to ease the coronavirus's financial effect. The plan includes help for organizations that are barely able to pay their rent as well as additional subsidy measures for businesses hardest-hit by dropping sales figures.
The island nation had also announced that it plans to remove thirty-four prefectures that detailed no new infection cases from the state of emergency status on May 14.
The AUD/USD pair increased 0.38% to 0.6553 and the the NZD/USD pair was up 0.15% to 0.6142.
The USD/CNY pair increased 0.07% to 7.0781.
The GBP/USD pair was up 0.15% to 1.2426 after PM Boris Johnson unveiled the United Kingdom’s plans to gradually easy lockdown measures on Sunday (May 10).