The dollar is declining in light of the growing concern after the US central rate cut
Economy News - Baghdad
The dollar price fell near its lowest level in five months against the yen on Wednesday, after an emergency cut from the Federal Reserve (the US central bank) raised interest rates by 50 basis points, more concern about the impact of the Corona virus and pushing US Treasury yields to come down to levels Low record.
The US currency was also traded near its lowest level in nearly two years against the Swiss franc, with investors scrambling for traditional safe havens as lower interest rates seemed insufficient to offset the risks posed by the spread of the Corona virus worldwide.
The euro was among the currencies that benefited the most from the generally weaker dollar, as traders bet that the US central bank would cut interest rates more than the European Central Bank would do.
The dollar fell to 106.85 yen in Asia on Wednesday, its lowest in nearly five months, and then settled at 107.36 yen.
The US currency was 0.9566 Swiss francs, near its weakest in nearly two years.
The US central bank surprised investors by cutting interest rates by 50 basis points to a target range between 1 percent and 1.25 percent on Tuesday, two weeks before a regular policy meeting.
In the internal market trading, the yuan jumped to a six-week high at 6.9288 to the dollar, in another sign of a tendency towards a weak US dollar.
The yuan ignored data showing that Chinese service sector activity faltered to its lowest level ever in February, but negative figures provide another indication of the economic impact of the influenza-like virus.
The Australian dollar pared its losses to trade at $ 0.6599 as Chinese data erased some of the Australian currency's luster, whose economy is heavily dependent on trade with China.
Large-scale selling of the dollar encouraged bets that the rise of the euro to buy the single currency strongly.
The euro hit $ 1.1158 in its latest dealings, near a two-month high reached on Tuesday.
Against the pound sterling, the euro was trading at 87.07 pence, near the highest level in more than four months.
Sterling reached $ 1.2819, to hold on to most of his gains made in the previous session.
The uncertainty surrounding trade talks between Britain and the European Union is putting pressure on the British currency, along with growing concern over interest rate cuts in the UK.