Investors chose defensive tactics during Monday trading
They decided to transfer their financial means from Asian currencies to American dollar, which benefits from coronavirus epidemic and good state of American economy.
Chinese yuan, Korean won, Japanese yen and even Australian and New Zealand dollar experienced drop against American dollar in the beginning of the week. The main reason for the decline was mainly caused by fear of investors to risk due to the number of people infected by coronavirus.
Moreover, Covid-19 has newly appeared in high numbers outside of mainland China. Tens to hundreds of cases newly appeared in Iran, South Korea and Italy. “Investors now evaluate currencies based on their sensitivity on coronavirus spread news,“ Barclays analyst said.
From this point of view, American dollar seems to be the best choice. In addition, investors appreciate good state of American economy. Dollar now seems to be a safe port as record-high gold.