Well-known Chinese news site Sina recently reported that the U.S. Dollar Index has frequently reached highs when the financial market saw free falls across the globe. Key non-U.S. currencies suffered most, including the Euro, the British Pound, the Canadian Dollar, and the Australian Dollar. The Japanese Yen followed the U.S. Dollar’s growth, but with heavy fluctuations. With this background, central banks like the Federal Reserve and the Bank of England have been lowering interest rates and pushing new easing plans. However, these activities have not made much of a difference. The U.S. Dollar remained outstanding among all of this bad news and appears to be able to hold its position to serve as a safe harbor for money looking for a place to park. The coronavirus situation continues to spread fear in financial markets globally. That, coupled with the Saudi-Russia oil price war, means that the future remains uncertain for the time being. Major economies are expected to have a new round of announcements regarding their poor economic data.
Source: Sina, March 14, 2020