Dollar outperforms Euro as investors consider a deepening virus impact
The U.S. Dollar towered over the declining Euro and other heavily sold exporter currencies on Wednesday as investors took into consideration of a deepening economic fallout due to the coronavirus outbreak in China.
The virus’ death toll in China rose to over 2,000 with more than 74,000 in infected cases. Meanwhile, the government’s drastic measures to contain the virus has resulted in the disruption of its economy and supply chains.
The yield curve between U.S. three-month bills and 10-year notes inverted overnight. In contrast, German investor confidence plunged amid its deteriorating economy, moving the Euro cheaper than $1.08 for the first time since 2017.
Against a basket of currencies, the USD sat at a 4-month high at 99.452 and touched a 1-week high against the AUD and NZD overnight.
The Euro fell by 3.7% to $1.0796 following signals of divergence between the economies of Europe and the U.S.