NEW YORK (Reuters) – The u. s. dollar, which usually works as a safe haven investment rose on Tuesday, even as investors the risk of their portfolios, buying U. s. stocks and the sale of Treasury bills.
FILE PHOTO: U. s. dollar banknote is seen in this image, the illustration jobs September 3, 2018. REUTERS/Dado Ruvic/Illustration/Photo archives
Investors have had a mixed risk expectations, with an eye on the warnings of a second wave of COVID-19 infections of more and more countries have eased lockdown restrictions.
Germany said on Tuesday that the new corona virus infections have been accelerating exponentially after the start of the measures for facilitate the moment, the news is that it sounded a global alarm for a moment that the companies, ranging from Paris, Paris hair salons, in Shanghai, in the Disneyland park re-opened. The South Korean infections also rebounded to a month.
Japan said Monday that it could end its state of emergency in many regions, this week, and New Zealand has also said it could ease restrictions on Thursday. The united KINGDOM has also established plans to facilitate the moment, in France, the shops have reopened Monday.
The market is for the re-opening of the economy too quickly resulting in another wave of the virus should continue to keep investors cautious,” wrote analysts at Action Economics.
However, This is not a classic for the risk of the environment”, said Axel Brand, president and chief investment officer, Investment Brand.
On the one hand, the Brand should be noted, there is evidence of a risk to move. The dollar index =USD, a measure of the currency versus a basket of six rivals, was 0.37% higher on Monday, to 100.16. The Swiss franc, another safe haven, rose versus the euro EURCHF= to a more than two weeks.
During this time, the Japanese yen is a classic safe-haven bets, were considerably lower. Against the dollar, the yen JPY= and was last down 0.93% to 107.62, and it has also been 0.69% weaker versus the euro EURJPY= to 116.38. Prices or the U. s. treasury bills, which are also of high-quality assets that benefit in times of crisis, it fell and yields rose as demand sank.
U. s. stocks have also benefited Tuesday from the improvement in risk sentiment, even if some of this movement has been traced by the close, the S&P 500 index .SPX is flat.
The euro fell against the dollar and was last down around 0.26%, to $1.081 M=.
The dollar this week, takes its cues from us Federal Reserve Chairman, and Jerome Powell’s speech on Wednesday, and inflation, unemployment, and retail spending data, according to Joe Manimbo, senior market analyst at Western Union Business Solutions to our clients.
Reporting by Kate Duguid in the city of New York, and Elizabeth Howcroft, London; Editing by Nick Zieminski and Dan Grebler