Last updated: Friday October 02, 2020 KSA 10:51 – GMT 07:51
Publication date: Friday October 02, 2020 KSA 09:41 – GMT 06:41
Source: Singapore – Reuters
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The dollar jumped and the yen, which is considered a safe haven, reached its highest levels in the week, today, Friday, after US President Donald Trump announced that he was infected with the Corona virus and entered quarantine.
The news could cause a new wave of volatility in the market, as investors prepare for the presidential elections scheduled for November, which will see intense competition.
The US currency rose about half a percent against the risk-sensitive Australian and New Zealand dollars, while the yen rose about 0.3% to 105.27 per dollar, its highest since Monday.
In addition, the Dow Jones index fell 1.7% and the broader Standard & Poor’s 500 Index 1.6%, while the yen rose against the dollar.
The euro fell 0.3% to $ 1.1716.
The yen gained larger against other currencies, in light of a widespread shift away from riskier assets and commodities. Trading volumes in Asia were thin due to holidays in China.
Trump said, on Twitter, that he and first lady Melania Trump had tested positive for the emerging coronavirus, and that they would be quarantined.
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Analysts say this could turn his campaign upside down, but the medium-term implications for currencies will not be immediately clear.
“This is likely to reduce Trump’s ability to campaign,” said Sean Callow of Westpac.
“It hurts him as well, as the public discourse does not cause much concern,” he added. “It puts the Covid crisis itself again in the foreground and center … But will this change the opinion polls? Simply I don’t know.”
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The Australian dollar last traded at $ 0.7144 and the New Zealand dollar at 0.6629. Against a basket of six competing currencies, the dollar rose 0.2% to 93.899.
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