The Strategist

US dollar is going up on the global market

02/07/2020 - 08:05

The dollar has updated a four-month high on the world market. The confident strengthening of the US currency is taking place against the backdrop of continuing risks regarding the expansion of the coronavirus epidemic, strong data on the US economy, as well as the failure of the impeachment procedure of President Donald Trump.
On Thursday, February 6, the dollar exchange rate on the world market has updated a maximum since October 2019. According to Reuters, the DXY index (the dollar against six leading currencies) rose by 0.3% to 98.57 points, the highest level since October 15. Against this background, the Swedish krona and pound sterling rates lost 0.5–0.6%. The dollar beat the European currency as well. On Thursday, the euro fell by almost 0.3% to $ 1,093, the lowest since October 9.

The sharp strengthening of the American currency began on the eve against the background of statements by representatives of the World Health Organization that at the moment there are no known effective drugs against coronavirus.

This disappointed investors, as earlier Chinese media reported that scientists in the country conducted tests and identified two drugs that could help fight the epidemic.

Data on unemployment in the United States also added attractiveness to investments in US currency. On Thursday, February 6, Automatic Data Processing reported that the number of jobs in private companies in the country in January increased by 291 thousand, compared to the previous month. Analysts polled by Reuters expected growth of only 156 thousand. In addition, investors positively assessed the failure of the impeachment launched by the Democrats last fall. The US Senate on Wednesday acquitted Donald Trump on both counts: of abuse of power and obstruction of Congress’s work.