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Felicia Tan
in
Forex
June 25 22:11

Fear of a second wave of the virus is pushing USD up

On Thursday, at the beginning of the European trading session, the dollar resumed growth amid increasing number of coronavirus diseases and growing fears of the negative impact of the pandemic on the economic recovery.
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At 03:00 Eastern Time (07:00 UTC), USD index rose by 0.2% to 97.293.
The pair EUR/USD fell by 0.1% to 1.1239, GBP/USD declined by 0.1% to 1.2410, while USD/JPY rose by 0.1% to 107.15.
The pair USD/CAD rose by 0.1% to 1.3649, after Fitch rating agency lowered Canada's long-term foreign currency debt rating from the highest level (AAA) to high creditworthiness (AA +). Canada was the first country with the highest rating to lose this prestigious mark since the outbreak of the Covid-19 epidemic.
Turkey's central bank is to announce its interest rate decision and is expected to reduce the weekly repo rate again from 8.25% to 8.0%. Almost 12 months ago, Turkey's key interest rate was 24% after the currency crash and the central bank has cut the rate nine times since.
The Turkish lira (USD/TRY) trades at 6.8587, up 0.1%, not too far from the historic high of 7.27 reached in early May.
The Bank of Mexico is also supposed to reduce its key rate by another 50 basis points at the monetary policy meeting later Thursday.