The dollar fell on Tuesday amid expectations of a sharp rate cut by the Federal Reserve after US President Donald Trump’s plan, which had disappointed the markets, aimed at containing the outbreak of coronavirus.
Trump on Wednesday announced a 30-day ban on entering the US from Europe, responding to calls for action to curb the rapidly spreading coronavirus epidemic. The dollar lost 0.7% against the yen to 103.80 and fell by 0.2% against the euro to $1.13 against 7:00 London time.
Australia announced Wednesday a$11.4 billion stimulus package that includes wage subsidies and cash payments to small businesses. Nevertheless, the Australian dollar continued to decline due to growing concerns about the recession.
Investors are waiting for the outcome of the meeting of the European Central Bank on Thursday to understand how aggressive the new regulatory measures will be.