Arab merchant. com- Five of the eight major currencies suffered heavy losses at the start of the US session of the global currency market today, Monday.
The American came in at the top of the losing currencies today, and came second in terms of the volume of its losses in the currency market.
Following are the main reasons behind the apparent losses for each of the five currencies during today’s currency market trading:
The decline in the US dollar comes in light of geopolitical tensions between the US and China after House Speaker Nancy Pelosi visited Taiwan. These geopolitical tensions have dampened investors’ risk appetite, which negatively impacted the dollar today. The dollar saw a significant decline of 3.40% against the remaining eight major currencies.
In addition, fears of an economic slowdown grew, while expectations that the US Federal Reserve would raise interest rates sharply at its next meeting to curb high inflation rose.
The Japanese yen fell after data from health authorities in Japan yesterday indicated that 206,495 new coronavirus cases were reported in the country in the past twenty-four hours, bringing the country’s coronavirus infection rate higher. 200 thousand cases per day, which increases the fear of closure and the economic stagnation of the Japanese market. This negatively affected the trading of the safe haven Japanese Yen. The Japanese Yen saw a 2.55% decline against seven major currencies.
It saw a decline of 1.79% against major currencies during today’s trade. The decline comes in light of economic tensions in the euro area due to the upheaval and crisis. Germany is rejecting the decision to approve the Russian Nord Stream 2 pipeline, which is currently on hold, after the German government announced Monday.
A German official added that his country faces tough months ahead due to weak natural gas supplies, which negatively affected trading in the euro today.
During today’s trade, the Canadian dollar has lost 0.68%. This comes after a significant decline in oil, with Canada one of the main exporters of Brent crude, as contracts fell 0.49% to around $94.40 a barrel during today’s trade. Although a recovery was initiated at this time, its losses negatively affected the Canadian dollar today.
The Sterling Pound was down 0.32% against major currencies during today’s trade. Today, Britain saw an increase in the number of coronavirus infections around the United Kingdom and increased fears of a new shutdown of markets in Britain, which reinforced fears of an economic slowdown and negatively affected currency markets.
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