Dollar sells off as investors buy risky assets on expectations the lockdown will continue to ease

The dollar is significantly weaker again today as traders move into riskier assets and sell the greenback. As month-end approaches, investors favor equities and emerging markets over traditional safe-haven assets. As Europe and other geographies ease lockdown restrictions, the dollar will lose ground. When cities in the US begin to exit the lockdown, the dollar may strengthen in anticipation of a return of economic activity.

“Knowledge speaks, but wisdom listens”
Jimi Hendrix
  • FX Rates
    April 28, 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 sank for a second day as risk-on sentiment returns driven by countries, primarily in Europe, beginning to loosen COVID-related lockdowns. The expected return of economic activity is leading investors to buy equities and move into emerging market investments. In many cases, this means selling US dollars. 


    The pound is stronger on general US dollar bearishness despite the UK remaining on lockdown with no timetable yet for reopening.


    The euro headed for a third day of gains versus the US dollar as more countries on the continent began to ease COVID-related quarantines. The ECB meets Thursday and may announce additional bond buying measures to support the economy.


    The Canadian dollar is stronger despite the price of oil sinking again today. However, with oversupply of oil expected to lead to a shortage of storage space, the financial markets are increasingly looking at the July contract and other contracts with longer maturities to gauge a true longer-term price.


    The Japanese yen strengthened again today despite a general risk-on sentiment in global markets. The Bank of Japan yesterday announced an increase in Japanese yen denominated assets including equities. 

    The Peoples Bank of China continue to hold the renminbi in the 7.03-7.09 range as they await the slow increase in consumer spending to help boost the economy.

    The Australian dollar traded above 0.65 and continues its steady climb. It is now up 12% versus the US dollar since the March lows.

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.

Peter Compton
Peter Compton

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.

Global stocks reach all-time highs on strong China GDP, soft US bond yields


Daily FX Update: Lower dollar, higher stocks amid upbeat US earnings & economic data


Daily FX Update: Stocks firm, dollar lower ahead of bank earnings reports


Daily FX Update: CPI exceeds expectations, stocks and dollar mixed


Daily FX Update: Stocks & dollar lower ahead of inflation and retail sales data


Daily FX Update: Treasuries, Dollar tick higher to end week