Dollar Demand Rises As Virus Concerns Rise

Dollar Demand Rises As Virus Concerns Rise

Dollar Demand Rises As Virus Concerns Rise

TOKYO (Reuters) – The dollar held its gain against major currencies on Thursday amid signs of slowing economic growth in Europe and the United States, which rekindled fears of a second wave of coronavirus.

The euro, under pressure from fears of renewed lockdowns, may face an additional hindrance in the form of data on business sentiment in Germany, which will be released later on Thursday.

The dollar is likely to continue to appreciate amid rising coronavirus cases in Europe and calls from Fed officials for additional fiscal support.

“Risk is selling all over the place and there is a lot of dollar shortings happening,” said Yukio Ishizuki, currency strategist at Daiwa Securities.

“The coronavirus issues and the need for more stimulus are turning flows back to the dollar.”

The dollar index against a basket of six major currencies rose 0.01% to 94.395 by 09:08 UTC.

The euro eased 0.03% to $ 1.1656, trading near its two-month low.

Green traded near a nine-week high against the Swiss franc at 0.9236 and traded flat against the yen at 105.45 yen.

The pound sterling was down 0.1% to $ 1.2709, near its lowest since late July.

(Stanley White, translated by Olga Devyatiarova. Editor Marina Bobrova)

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