Dollar rallies as risk-off mood continues

The dollar gained another 1.3% overnight as markets continue in a risk-off mood. In highly volatile markets, the Bloomberg Dollar Index hit a record high amid severe market uncertainty in all asset classes. Bond yields moved higher in a flight to cash (short-term money markets). The European Central Bank and other central banks and governments continue to cut interest rates and provide additional stimulus. European sovereign credit spreads narrowed for the first time in weeks. FX market liquidity is tight.

“Within you, there is a stillness and a sanctuary to which you can retreat at any time and be yourself.”
Hermann Hesse, German poet, novelist
  • FX Rates
    March 19, 2020

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.

  • USD

    The dollar is king amid continued panic in global financial markets. The dollar gained for the eighth straight day, and the dollar index (DXY) stands at its best level since December 2016. Global equity markets are mostly in the red. Countries suffering the most are those with large current account deficits – Latin American countries, India, Indonesia, the UK and Canada, and large commodity exporters – Australia, Canada, South Africa, and Brazil.


    The UK pound reached another fresh low at $1.1476, but has rallied since and now sits close to last night’s closing level near $1.16. The pound and the UK have been particularly vulnerable to the disruption in financial markets, as their economy is so dependent on the financial sector and its important role in global financial markets. It also suffers from twin budget and current account deficits, making it dependent on capital inflows.


    The European Central Bank announced a 750 billion-euro debt-buying program to provide liquidity and to maintain low borrowing costs. The euro still dropped over 1% overnight and most European equity markets are in the red.


    The USD/CAD reached a fresh high at C$1.4667 before dropping below C$1.45 amid a reversal higher in oil prices. The Bank of Canada is expected to cut Canada’s interest rate to near zero shortly.


    The USD/JPY currency pair moved higher for the third straight day and touched ¥110 for the first time in a month. The Bank of Japan made several announcements, including the buying of JGBs with maturities up to 25 years, supplying short-term funds to markets which will be shut for a local holiday, and buying a record amount of Japanese equity ETFs. The yen’s role as a safe-haven currency has, at least temporarily, taken a back seat to the overwhelming demand for the US dollar against all currencies.

    The Chinese yuan sold off aggressively with the USD/CNY breaking higher to 7.12, its highest level since last September. However, compared to other currencies, its relatively firm and stable. China’s central bank has eased less aggressively than its peers, which has supported its currency.

Contact Us

For more analysis on FX markets or information regarding SVB's FX services:

Contact your respective SVB FX Advisor or the SVB FX Advisory Team at
See all of SVB's latest FX information and commentary at

Subscribe to receive the Daily FX Update in your inbox.

By providing your email address and clicking on the Subscribe button below, you consent to receive emails from Silicon Valley Bank for your chosen categories. You also consent to the terms of our Privacy Notice. If you have privacy questions, you may contact us at You can withdraw your consent at any time.

Scott Petruska, CFA
Scott Petruska, CFA

Insights from SVB Industry Experts

SVB experts provide our customers with industry insights, proprietary research and insightful content. Check out these related articles that may be of interest to you.

Daily FX Update: Powell disappoints, upbeat US jobs data, dollar higher


Daily FX Update: Global equites lower on rising US bond yields, dollar mixed


Daily FX Update: Bond yields rise, global equities mixed, dollar higher


Markets pause, equities and dollar mixed


Global bond yields soften driving risk-on equity buying, dollar is mixed


Nervous bond market helps dollar