Greenback rallies on weak Asian and European stock markets

Greenback rallies on weak Asian and European stock markets

The Bloomberg Dollar Index hit its highest level in five weeks as Asian and European equities dropped - fueled by disappointing earnings from US tech corporates. The expectation of further delays of Covid-19 vaccine distribution has supported the move lower for equities. In the eurozone, the European Union has failed to resolve its dispute with AstraZeneca, increasing the risk of delays for vaccines.

“It’s a myth that you can’t have it all. You can have it all – just maybe not all at the same time.” 

Eva Longoria
  • FX Rates
    January 28, 2021

    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 US dollar strengthened by the most in a month yesterday following overnight risk-off sentiment fueled by weaker than expected tech company earnings and disappointing vaccine distribution news. Yesterday's Fed statement that it intends to maintain a dovish stance had little impact. The greenback rallied as much as 0.8% versus G10 peer currencies.

    GBP
    Sterling fell as much as 0.4% to $1.3630 after falling 0.4% in the previous day's trading session. The added pressure overnight stems from broad USD strength.
    EUR

    The EUR is under downward pressure after hitting multi-year highs at the end of 2020 and as investors react to disappointing vaccine news. Despite the weaker EUR, the EUR/USD currency pair held above January lows.

    CAD

    The loonie dropped to lowest levels in more than a month following the decline in oil prices and equities. USD/CAD rose as much as 0.7% hitting a high of 1.2881.

    ASIA/PACIFIC

    The Japanese yen fell to lowest level in over two weeks as the US dollar became the preferred safe haven currency amidst a sell-off in equities. USD/JPY hit 104.37, the highest level since Jan 11.

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Cate Camerota
WRITTEN BY
Cate Camerota

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