Investors moved back into riskier assets on hopes that lockdowns may be slowing the spread of the coronavirus in some countries.
The coronavirus crisis has wrought after its spread caused widespread panic, sowed chaos through financial markets and prompted the virtual shutdown of the global economy.
In Spain and Italy, which account for over 40% of the world’s fatalities, the death rate has been declining for several days. Now, public discussion has turned to how and when to ease weeks of drastic curbs on personal and economic activity.
In the United States, the governors of New York, New Jersey and Louisiana pointed to tentative signs that the coronavirus outbreak may be starting to decline in their states. But they warned against complacency as the death toll nationwide approached 11,000.
British Prime Minister Boris Johnson was in intensive care on Tuesday after receiving oxygen support for serious COVID-19 complications. He left his foreign minister to lead the government’s response to the accelerating outbreak.
World stock markets enjoyed a second day of sharp gains. Iinvestors moved back into riskier assets on signs of progress against the coronavirus in both Europe and the United States.
A recovery in oil prices on hopes that the world’s biggest producers will agree to cut output boosted risk sentiment.
Action by central banks to ease a scramble for dollars has helped bring some calm to markets.
START TRADINGForex – Back into riskier assets on coronavirus hopes
The greenback dropped and riskier currencies, including the Australian dollar, outperformed on Tuesday as risk appetite improved. Currency markets came alive as a tumbling dollar sent the euro racing out of a six-session rut of falls
The dollar index that tracks the dollar against six major currencies was last down 0.93%.
The dollar was down 0.18% against the yen as Japanese Prime Minister declared a state of emergency for parts of the country. Abe still faces criticism for delaying to counter the spread of coronavirus.
The Australian dollar jumped 1.91% to $0.6202 while New Zealand’s dollar rose 1.3%.
The euro shot up 0.8% to $1.0880 to snap a six-day run of falls.
The Canadian dollar strengthened against the US dollar as signs of a slowdown in coronavirus-related deaths bolstered investors sentiment. The shift in sentiment offset lower oil prices. The loonies was trading 0.4% higher at 1.4138 to the greenback.
The pound also rose a day after British Prime Minister was moved into intensive care due to worsening coronavirus symptoms. Analysts said the currency is benefiting from the increased risk appetite that is weighing on the U.S. dollar. Johnson’s condition is also unlikely to mean a change in the government’s policy direction in fighting the virus.
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Sources: Reuters, Investing, CNN money