Dollar firms as coronavirus cases surge, yuan drops

17.07.2020 - Petr Mazaylo
Dollar firms as coronavirus cases surge, yuan drops

The dollar firmed against its peers as concerns that a resurgence of the coronavirus will restrict economic activity lifted the safe-haven demand for the U.S. currency.

The yuan suffered declines in the past three weeks as the diplomatic tensions between the United States and China worsened.

The euro was supported by hopes that EU officials will accede to the proposed fiscal stimulus at a meeting later on Friday.

Some investors are pointing out the troubling signs that the surge in coronavirus cases in the United States is endangering its economy. Meanwhile, the intensifying U.S.-China conflict kept a risk-off sentiment.

The dollar traded at 107.24 against the yen in Asian trade. The euro steadied at $1.1381 and rose slightly to 90.60 pence per pound.

The pound sat at $1.2560, while the dollar stood at 0.9460 on the Swiss franc.

Several U.S. states have reimposed lockdowns as infections continued to jump. On top of that, the Trump administration is considering banning travel on all members of the Chinese Communist Party to the United States.

This week, the United States put pressure on China over its territorial claims, civil liberties, and access to technology.

In onshore trade, the yuan fell to 7.0041, its biggest drop since June.

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