The New York Federal Reserve vows to pump in over $1 trillion to fight coronavirus-linked 'disruptions' in markets. Follow live updates:
The US dollar is climbing higher as markets are flashing red around the globe. Why?The ICE US Dollar Index, which measures the American currency against a basket of six others, was up 1.4% around midday. The euro -- the dollar's main rival -- was down 1.5% at $1.11.US assets got slammed in a massive sell-off of risk assets, the Federal Reserve cut interest rates and is expected to lower them further. Ordinarily this wouldn't be good for the dollar. But these are hardly ordinary times.
Tensions are beginning to build in the dollar funding markets. The US currency is used in contracts around the world. The impact of a further tightening in US dollar funding markets may echo 2008 in that the dollar might grind higher, more or less regardless of the situation in the domestic economy," said Shaun Osborne and Juan Manuel Herrera, FX strategists at Scotiabank.
Despite the similarities to the 2008 liquidity crunch and companies dashing to bolster their US dollar holdings, things are by no means as bad now as they were then, they added.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
Fed to pump more than $1 trillion in dramatic ramping up of market interventionFed to pump more than $500 billion into short-term bank funding, expand types of security purchases
Leer más »
U.S. Fed banks in NY, Boston and San Francisco encourage staff to work from homeFederal Reserve staff at the bank's New York, San Francisco and Boston bran...
Leer más »
North Carolina police shooting wounds suspect, sparks tension, protests: 'City is fed up'In an early-morning press conference, police addressed 'misinformation' circulating on social media about the suspect's age and the circumstances of the shooting.
Leer más »
Coronavirus 'Containment Area' Created Around N.Y. ClusterNPR's David Greene talks to New Rochelle Mayor Noam Bramson about the National Guard which will help sanitize public spaces and bring food to homes in the containment area for COVID-19 infections.
Leer más »
Fed faces headache, taps epidemiologists in hunt for policy cluesThe escalating coronavirus outbreak is giving the U.S. Federal Reserve a policy ...
Leer más »