As the coronavirus spread faster outside China, the outbreak source, with the infections rate in China slowing, investors flee to safe havens.
The coronavirus’ rapid spread in Iran, Italy, South Korea and elsewhere left alarmed governments and people across the globe rushing to implement emergency measures. For the first time, new infections around the world in the past 24 hours surpassed those in mainland China.
President Donald Trump told Americans on Wednesday that the risk from coronavirus remained “very low”. The US President placed Vice President Mike Pence in charge of the U.S. response to the looming global health crisis.
China’s central bank said on Thursday that it would ensure ample liquidity to help limit the impact of the epidemic.
Safe-haven currencies such as the Japanese yen and the Swiss franc gained on Thursday. The Japanese currency headed towards 110 yen to the dollar, up nearly 2% so far this week. The dollar fell 0.32%. That was enough to help drag the China-sensitive Aussie dollar from an 11-year low and lend support to the euro.
START TRADINGForex – Investors flee to safe heavens on pandemic fears
Some currencies were locked in narrow ranges as traders nervously monitor the global spread of the coronavirus. Investors in the dollar are also focused on the release of U.S. durable goods orders and gross domestic product data later on Thursday.
The dollar fell against the yen and the Swiss franc on Thursday after the first coronavirus infection of unknown origin was confirmed in the United States. This added to fears of a pandemic and, thus, investors flee to safe havens.
The dollar fell 0.35% to 110.06 yen, extending a pullback from a 10-month high of 112.23 yen reached on Feb. 20.
The dollar also fell 0.35% to 0.9735 Swiss franc, a currency that is traditionally sought as a safe haven.
The dollar also fell from a three-month high versus the pound and declined versus the euro.
The euro rose 0.24% to $1.0902 as traders pondered how European officials would respond to a weakening economic outlook.
The pound slid 0.2% to a one-week low of $1.2860. Against the euro, it fell 0.8% to 85.06 pence, a three-week low. It was also fell against the safe-haven Japanese yen, which rose to a three-month of 141.50 to the pound.
In commodity markets, oil prices fell nearly 3% on Thursday, plunging for a fifth day to their lowest since January 2019. A rise in new coronavirus cases outside China fuelled fears of a pandemic that could slow the global economy and dent demand for crude.
Brent crude was down $1.55, or 2.9%, at $51.88 a barrel at 1315 GMT. WTI futures fell by $1.41 cents, or 2.9%, to $47.32 a barrel.
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money