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| Commodity News |
| HeadLine : |
Cash dash has dollar set for best week since 2008 crisis |
| Date : |
Mar 20 2020 |
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Even the U.S. Federal Reserve's extension of discount dollar funding - already available to six of the world's biggest central banks - to nine more overnight showed only the most tentative signs of satisfying demand for greenbacks. The dollar rose 0.5% against the yen to a month-high of 111.30 yen JPY. Already thin liquidity was reduced further by a Japanese public holiday, exacerbating sharp moves. At the same time, currency traders want dollar positions and investors need cash to cover losses in the stock market, and are liquidating everything from gold to bonds to get the dollars. The dollar greenback has gained 4.5% against a basket of currencies USD this week so far, its best since 2008. The scramble has already prompted the U.S. Federal Reserve to allow 15 central banks around the globe to borrow dollars cheaply against their domestic currencies. Yet stress, which is evident in cross-currency basis swaps, remains evident in the cost of borrowing dollars abroad and in the week's 4% decline in the gold price.
Source : Reuters
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