Dollar Strugles Amid SINO-U.S Tensions, Coronavirus Woes

The dollar began the week under pressure from all corners as intensifying Sino-U.S. tensions added to worries that the coronavirus resurgence in United States could undermine the recovery in the world’s biggest economy.

  • In morning trade it fell to a four-month low against the yen and a new 22-month trough on the euro at $1.1699.
  • The Antipodean currencies also rose a little and against a basket of currencies the dollar was at its lowest since September 2018.
  • The lack of support for the greenback, even as tit-for-tat consular closures marked the latest escalation in U.S.-China tensions, is a shift for the dollar which has been closely tracking global sentiment through the coronavirus crisis.
  • It also comes with a broad re-evaluation of the euro’s value after a landmark European agreement on a fiscal rescue package just as cracks start to emerge in the U.S. labor market rebound.

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