[ad_1]
ILLUSTRATION. Exchange house employees calculate US dollars./pho KONTAN / Carolus Agus Waluyo / 09/22/2020.
Source: Reuters | Editor: Tendi Mahadi
KONTAN.CO.ID – SINGAPORE. The US dollar and Japanese yen rose to their highest levels this week after US President Donald Trump said he was positive for COVID-19 and would go into quarantine.
The news could spark a new wave of market volatility as investors prepare for the fierce presidential elections in November.
The dollar it was up about half a percent in risk-sensitive Australian and New Zealand dollars. Meanwhile, the yen rose 0.3% to 105.27 yen per US dollar, the highest point since last Monday.
Read also: Under pressure, the rupee continued to weaken to Rp 14.875 per US dollar at noon today.
The yen made higher gains against other currencies, amid a broad move away from riskier assets and commodities.
Trump previously said on Twitter that he and his wife Melania had tested positive for the coronavirus and would be quarantined.
Analysts say this could reverse the campaign, but the medium-term implications for the currency remain unclear. “This has the potential to reduce Trump’s campaign capabilities,” said Sean Callow of Westpac. Reuters.
Investors were already eager for signs that the long-awaited US fiscal stimulus package was stalling in Washington, and after a string of data, including unemployment claims and consumer spending, suggested that a slow US economic recovery it could lose strength.
Read also: LATEST NEWS: Donald Trump and Melania are positive for Covid-19
“What it says here is that the risks of the virus are still quite real. The infection rate in the US has not dropped any more. This reminds the public that the corona virus is still there,” said the FX Bank analyst of Singapore, Moh Siong Sim.
DONATION, Get Free Vouchers!
As an expression of appreciation for your attention, there are free gift vouchers that can be used to purchase at the KONTAN store.
