Business & Economy

U.S Dollar Gains Further, As Global Geopolitical Climate Worsens

The U.S dollar ends on a good gained on Friday’s trading session, gaining 0.07% against the majority of other currencies that close at 97.460.

Stephen Innes, Chief Global Market Strategist at AxiCorp, in an email sent to Nairametrics, speaks on the worsening geopolitical climate around the world with the resurgence of COVID-19 cases.

Innes said: “The transmission from the incredible policy support offered up by central banks and governments alike to the real economy will be dotted with potholes but the resurgence of Covid-19 has transformed those potholes into craters.”

Advertisement

U.S dollar Gains

Why tracking the U.S dollar Index helps: Individuals hoping to meet foreign exchange payment obligations, and process transactions via the dollar to countries like England, France, or Japan, will need to pay fewer dollars for such transactions.

The American Dollar Index tracks the dollar’s strength relatively against a bouquet of other major currencies around the world, such as Japanese yen, Euro, British pounds sterling, Swedish krona, Canadian dollar, Swiss Franc, etc.

Advertisement

READ: U.S Dollar Suffers Against Major Currencies, Investors In Confusion

COVID-19 cases across America rose to at least 39,818 on Thursday, the largest one-day increase of the COVID-19 pandemic recorded, with Texas, America’s energy powerhouse, becoming the new hot spot for the pandemic.

“There’s an inverse correlation between the risk sentiment and the dollar,” Erik Bregar, head of FX strategy, at Exchange Bank of Canada said in a note to Reuters. “Whenever we get headlines that hurt risk sentiment that helps the dollar,” Erik Bregar added.

The American currency continues to attract global investors and currency traders in the wake of renewed market uncertainty, however, it’s very likely that any rebound seems to be a good selling opportunity.

Advertisement

READ: Investors, Importers Fight For Dollar, As Naira Falls To N454 To A Dollar

Facebook Comments
Adebayo

Adebayo is a Content Developer and website manager who loves to learn, unlearn and relearn. He has a knack for exploring the tech world. He is always thirsty to learn as the tech ecosystem evolves every day.

Recent Posts

Apple Unveils iPhone 17 Air, Slick, Slimmer Than Previous Models (PHOTOS)

Apple Inc is set to present a slimmer iPhone 17 Air model, marking a potential…

2 weeks ago

Six-Year-Old Ella Shoots, Kills American Police Officer In Mother’s Defense

A six-year-old girl, Ella, fatally shot a 28-year-old American police officer last month after witnessing…

2 weeks ago

LIRS Urges Taxpayers To Meet March 31 Deadline For Annual Tax Return Submission

The Lagos State Internal Revenue Service (LIRS) reminds all individual taxpayers, including self-employed individuals, those…

2 weeks ago

Stanbic IBTC Bank Partners Autochek To Boosts Car Ownership, Disburses N4Bn

Stanbic IBTC Bank, a prominent financial institution in Nigeria, has partnered with Autochek, an innovative…

3 weeks ago

Stanbic IBTC PMI®: Output Growth Accelerates To Fastest In Just Over One Year

The headline figure derived from the survey is the Stanbic IBTC PMI® - Purchasing Managers’…

3 weeks ago

Stanbic IBTC Bank Reintroduces Its Private Banking Offerings To Empower Nigerians Build Lasting Wealth

Stanbic IBTC Bank, a subsidiary of Stanbic IBTC Holdings and a leading financial service solutions…

3 weeks ago

This website uses cookies.