The US dollar is stable against the euro, is growing slightly against the yen and cheaper against the pound. Dollar indices show a slight decrease. The spread of the Covid-19 coronavirus outside of China has raised investors’ concern that the consequences for the global economy will be more dramatic than previously thought.
Analysts are starting to think that the Federal Reserve System in response may lower interest rates. A number of them expect that the reduction in the cost of lending before the end of this year may reach 50 basis points from the current 1.5 – 1.75% per annum. DBS expects Japan’s economy to show a decline this quarter as well, resulting in a technical recession for the first time since 2012, according to Dow Jones.
As of 8:00 London time, the euro is trading around $1.0855 against $1.0854 at the close of the last session. The value of the single European currency against the yen increased by 0.09%, to 120.30 yen compared to 120.19 yen on Monday, the dollar – by 0.10% to 110.83 yen against 110.72 yen. At the same time, on Monday, the Japanese national currency rose in price by 0.8%, which was the highest increase in six months.