The dollar recouped lost ground on the yen and extended gains against risk currencies on Tuesday, in a choppy trading session that underlined fragile confidence in frazzled markets.
Market liquidity was tight and investors remained nervous after coordinated moves by central banks had spectacularly failed to quell trepidation over the coronavirus pandemic.
The dollar rose 0.8% to 106.69 yen and gained on the euro, pound, as well as the Australian and New Zealand counterparts and most emerging markets' currencies. The Australian dollar, seen as sensitive to global growth due to the country's link to commodities, fell 0.7% to a fresh 11-year low of $0.6065. The British pound is also under pressure, dogged by worries about not only Britain’s exit from the European Union but also its sizable current account deficit. Sterling traded at $1.2222, down 0.4% and near a five-month low of $1.2203 hit in the previous session.
Source : Reuters