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Dollar climbs down as panic subsides, on course for biggest loss in decade
The dollar dropped to 109.42 yen, shedding 1.44% overnight while the euro also jumped 1.40% on Thursday and last stood at $1.1025.
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An officer is arranging US dollars in one of the foreign currency exchange outlets in Jakarta, on March 19. 2020 The dollar is on track for its biggest weekly fall in more than a decade on Friday as a series of stimulus steps around the world, including a $2.2 trillion US package. (Antara/Indrianto Eko Suwarso)
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he dollar is on track for its biggest weekly fall in more than a decade on Friday as a series of stimulus steps around the world, including a $2.2 trillion US package, calmed a panic over a global recession following the coronavirus outbreak.
Data showing an unprecedented rise in US jobless claims underscored the virus' devastating impact on the economy, but subsequent rise in Wall Street shares raised hopes a torrent of selling in risk assets may have run its course for now.
The dollar dropped to 109.42 yen, shedding 1.44% overnight while the euro also jumped 1.40% on Thursday and last stood at $1.1025.
The biggest mover among major currencies was sterling, which rose 2.8% overnight before giving up part of that gain in early Asian trade. The British pound last stood at $1.2183.
An easing in dollar funding conditions is helping to reduce demand for the dollar.
The number of Americans filing claims for unemployment benefits surged to a record of more than 3.28 million last week as strict measures to contain the coronavirus pandemic unleashed a wave of layoffs.
While that eclipsed the previous record of 695,000 set in 1982 and was up 3 million from last week, it was below investors' worst fears.
The focus stayed on an unprecedented $2.2 trillion stimulus expected to be approved by the US House of Representatives on Friday.
The dollar's index against six other major currencies lost 1.5%, its biggest daily fall in almost four years.
So far this week it is down 2.9%. If sustained by the end of US trade, that would mark the biggest weekly decline since 2009, underscoring the currency market's extreme volatility after last week racking up its biggest weekly gain since the global financial crisis more than a decade ago.
Highly choppy trade could continue towards the end of month, when there tend to be large flows from corporate and investors to hedge their currency exposures.
In particular, many asset managers may need to adjust their currency hedge positions after wild swings in global share prices.
The dollar's rises until last week, in particular against the A
