US dollar tanks amid coronavirus concerns

The US dollar dipped noticeably as market participants grew concerned over a soaring number of coronavirus infections in the US.

The dollar index, which measures the greenback against six major peers, decreased 0.82 per cent at 93.6738.

In late New York trading on Monday, the euro was up to $1.1749 from $1.1635 in the previous session, and the British pound increased to $1.2870 from $1.2788 in the previous session. The Australian dollar increased to $0.7141 from $0.7094, Xinhua reported.

The US dollar bought 105.38 Japanese yen, lower than 106.01 Japanese yen of the previous session. The US dollar was down to 0.9203 Swiss franc from 0.9222 Swiss franc, and it fell to 1.3360 Canadian dollars from 1.3422 Canadian dollars.

The greenback was under pressure as traders were worried that a continued spike in US coronavirus cases would threaten the country’s economic recovery, experts noted.

“The US is unable to get on top of the epidemic. The direct effects on US consumers and producers have all been widely discussed,” Ulrich Leuchtmann, analyst at Commerzbank, said in a note on Monday.

The pandemic crisis did tarnish the conviction of many that the US economic system is superior to many others, Leuchtmann added.