The dollar dived against the euro and yen on Monday as a slump in oil prices combined with coronavirus fears to drive U.S. yields to once-unthinkable lows.

Oil prices collapsed 30% after Saudi Arabia stunned markets with a pledge to slash prices and boost production following the collapse of an OPEC supply agreement.

Panicked investors rushed to the safety of bonds, sending 30-year U.S. yields beneath 1% and 10-year yields under 0.5%, all but eliminating what was once the dollar’s chief attraction.

In hectic trade, it fell 3% against the yen to 101.58, its lowest in three years. The euro was last up 1% at $1.1408, while the Australian and New Zealand dollars were down close to 2% with the fearful mood.

Source : Reuters