Dollar strengthens as US-China tension becomes focus

Hong Kong’s benchmark stock index fell more than 5% sparking a shift to risk-off trading. Concern that China is tightening its grip on Hong Kong is causing speculation that tensions between US and China will worsen. The US dollar is trading higher than all G10 peers except the Japanese yen.

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  • FX Rates
    May 22, 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 greenback strengthened against its G10 peers as tensions between China and the US heighten. The Bloomberg dollar index is up by 0.5%.

    GBP
    Speculation that the BoE could be the next central bank to push rates to negative territory caused downward pressure on sterling. The British pound has been the worst performing G10 currency this quarter weakening almost 2%.
    EUR
    EUR/USD broke through the 1.09 handle trading to a low of 1.0887. Minutes from the ECB’s meeting on April 30 showed that the central bank is concerned about scenarios becoming outdated as the virus situation evolves.
    CAD
    USD/CAD is above 1.40 as markets move to risk-off trading. The currency pair traded up to 1.4039 - the highest all week. Oil prices fell with July WTI crude futures 3.5% lower.
    ASIA/PACIFIC
    The Japanese yen is trading slightly stronger than the USD as investors move to safe haven assets. News that Japanese Finance Minister Aso and BOJ Governor Kuroda both pledged aggressive measures to fight the impact of the virus also supported the currency.
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Cate Camerota
WRITTEN BY
Cate Camerota

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