The dollar fell to a five-month low versus the yen after an emergency 50 basis p...
TOKYO - The dollar fell to a five-month low versus the yen after an emergency 50 basis point cut in interest rates by the U.S. Federal Reserve was deemed insufficient to offset downside risks posed by the global spread of the coronavirus.
The euro was one of the currencies to benefit most from the broad-based dollar weakness as traders bet the Fed will cut rates more than the European Central Bank. “This Fed rate cut is bad for dollar/yen, partly because Treasury yields are now very low. The dollar’s weakness is reflected in the euro, because the Fed will likely ease more that the ECB.”The greenback bought 0.9566 Swiss franc, close to its weakest level in almost two years.
The rate cut failed to arrest a sell-off in U.S. equities and sent benchmark 10-year Treasury yields crashing to a record low 0.906%, further reducing the appeal of the dollar.
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