Dollar rises against commodity currencies as investors rush to safety

The dollar rose against the currencies of oil producers on Thursday as a bounce in oil prices partly calmed investors amid a collapse in global demand.

The euro steadied against the dollar and the pound ahead of an EU meeting on economic response to the crisis. It traded at 1.0810 against the dollar and 87.72 pence against the pound.

The European Union may take a few months to agree on how to finance aid for economic recovery as disagreements remain, a bloc official said.

Analysts say that investors are rushing to the safety of the dollar as the pandemic is pulling the global economy into a depression.

The U.S. dollar climbed against the Canadian dollar, at C$1.4182. It rose to 24.5120 against the Mexican pesos and steadied at 10.8012 against the Norwegian crown.

Experts say that the market mood is affected by the uncertainty on how well EU governments will cooperate in financing the recovery.

The European Central Bank has agreed to accept junk bonds as collateral so banks can finance themselves. Investors also await the central bank’s fiscal response.

The dollar stood at 107.75 against the yen. The Australian dollar lost 0.3%, at $0.6304, while the New Zealand dollar dropped 0.25%, at $0.5938.