Demand for safe havens slide and commodity-linked currencies rise

Amid signs that the fatality rate in Spain, Italy and France are slowing, demand for risk-sensitive commodity currencies rose and outperformed against safe havens.  

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  • FX Rates
    April 6, 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

    After rising half a percent in early trading, the dollar pared gains as risk appetite returned and commodity currencies gained. The greenback is up 0.1%. 


    Sterling initially gave up 0.5% following news that Boris Johnson was taken to this hospital as he fights the coronavirus. A return in risk appetite on evidence of slowing coronavirus spread throughout Europe allowed the pound to recoup losses and gain 0.2% versus the dollar.


    After a week-long decline, the euro is finding stability around the 1.08 level. Signs of a slowing virus death rate in the eurozone have returned some optimism to markets.

    European leaders are set to meet tomorrow to reach consensus for an EU-wide bailout. Spain is said to be rolling out Universal Basic Income soon.


    Oil prices pared losses of nearly 11% and are posting a net price increase amid signs that Saudi and Russia are making progress on an agreement to curb oil output. The loonie advanced on higher oil prices and increased risk appetite.


    A slip in safe haven demand dropped the yen as PM Shinzo Abe rolled out a two phase stimulus package which will put Tokyo and six other economic hubs in a state of emergency. The USD/JPY pair climbed as high as 1.0938 – a two week high.  

    The Australian dollar led G-10 advances versus the dollar gaining as much as 1.3% to 0.6076.

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Kathryn Garvey
Kathryn Garvey

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