U.S. Dollar Advances Amid Worsening Worries About Coronavirus

Extending the upward move seen over the past few days, the U.S. dollar has shown a notable advance during trading on Thursday.

The U.S. dollar index has climbed by 0.8 percent, continuing to recover from the sharp drop seen in recent weeks.

The green back is also trading at 104.84 yen compared to the 104.54 yen it fetched at the close of New York trading on Wednesday. Against the euro, the dollar is valued at $1.1213 compared to yesterday’s $1.1270.

The strength in the dollar comes amid continued concerns about the impact of the coronavirus after President Donald Trump addressed the nation about the outbreak last night.

Trump was likely seeking to calm the markets but instead exacerbated concerns by announcing a ban on all travel from Europe to the U.S. for the next 30 days.

The president’s remarks also created some confusion, as he initially said the prohibitions would apply to trade and cargo before subsequently tweeting that trade “will in no way be affected.”

Trump also announced plans to address the economic impact of the outbreak, although some investors have complained about a lack of specifics.

Reflecting the widespread impact of the outbreak, the NBA, the NHL, and Major League Soccer have all suspended their seasons and Major League Baseball has delayed opening day.

Additionally, Oscar-winning actor Tom Hanks revealed that he and his wife, actress Rita Wilson, have tested positive for the coronavirus.

The coronavirus concerns have overshadowed the day’s economic data, including a report from the Labor Department showing an unexpected drop in initial jobless claims in the week ended March 7th.

A separate report from the Labor Department showed producer prices declined by much more than expected in the month of February amid a steep drop in energy prices.

The material has been provided by InstaForex Company – www.instaforex.com

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