Economic news

Dollar Slips as U.S. Leader’s Infection Response Disappoints

The greenback dropped on Thursday amid expectations of a further rate cut by the Federal Reserve after U.S. President plan, which had disappointed the markets, aimed at containing the outbreak of coronavirus.

The dollar lost 0.92 percent against the Japanese currency, to 103.63 and decreased by 0.46 percent to the single currency, at 0.8848.

According to the recent news, Trump announced the prior day a 30-day prohibition on entry the U.S. from Europe, responding to calls for action to curb the rapidly spreading coronavirus epidemic.

dollar eases against restPhoto: Flickr

The U.S. president talked about the economic measures to combat the virus, but did not disclose details about medical measures other than the assurances that "the virus has no chance against us."

WHO considers the coronavirus outbreak as a pandemic, World Health Organization Director-General Tedros Adhan Ghebreyesus said on Wednesday.

Australia, meantime announced $11.4 billion stimulus package on Wednesday that includes wage subsidies and money payments to small businesses. Nevertheless, the Aussie continued to decrease due to growing concerns over the potential recession. The Australian dollar lost 0.36 percent, to touch 0.6452 at 0825 GMT. Its New Zealand counterpart added 0.08 percent against the greenback, at 0.6451.

Investors’s focus on Thursday is the meeting of the European Central Bank and namely its outcome to understand how aggressive the new regulatory measures will be.

Source: Reuters


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