It seems as if the markets are still bracing themselves as "the Dollar struggled to make headway on Thursday, as very low U.S. yields and the prospect of even more monetary easing held back gains, while virus fears supported the safe-haven yen," according to Reuters.
The decision by the Federal Reserve (Fed) on Tuesday to introduce a 50 basis point interest rate cut had caused, according to Reuters, the Dollar down to a five-month low of 106.64 yen. The picture today shows that the Dollar once again "failed to forge ahead in Asia, leaving the Euro steady at $1.1136," the online news agency said.
As the market predicts that the Fed will put into practice more rate cuts over the following months, as the next scheduled Fed meeting will be on March 17-18, the Dollar may see further weakness.
The rate cut is not the only factor that is weighing in on the Dollar, the "widening economic fallout from the coronavirus outbreak had the yen rising 0.2% through Thursday and last trading at 107.33 per Dollar," Reuters reported.
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