The U.S. Dollar weakened on Tuesday as expectations grew that the Federal Reserve would cut interest rates this year to relieve pressure on the economy caused by China’s coronavirus outbreak.
Moreover, The greenback soared last week to its highest level in years as the virus spread further around the world, with investors regarding all U.S. assets as safe havens. But the index has fallen this week as other safe havens have risen because money managers now think the Fed may be more inclined to cut rates.
The U.S. Dollar Index, which measures the strength of the Greenback against a basket of six major currencies, fell and finished the session at 98.91.
Over in Europe, the single currency rose against the greenback on Tuesday and finished the session at 1.08811 EURUSD.
Meanwhile, Sterling rose against the U.S. Dollar as markets fears about the spread of coronavirus found some stability, encouraging investors to cut back their rush into dollars that had sent the British currency lower. GBPUSD finished the session at 1.30042.
Regarding Safe havens, the Swiss Franc surged against the U.S. Dollar and finished the session at 0.97607 USDCHF. Similarly, the Japanese Yen rose against the U.S. Dollar and ended the session at 110.204.
Over in Canada, the Canadian dollar strengthened against its U.S. counterpart, as investors bet that Canada’s economy would hold up better than some others as the coronavirus spreads. USDCAD finished the session at 1.32770.
Meanwhile, the Aussie dollar was little changed against the U.S. Dollar on Tuesday and finished the session at 0.66029 AUDUSD.
Gold prices fell on Tuesday, as the rally to 7-year highs encouraged profit-taking even as worries about the coronavirus kept investors anxious about the fate of the global economy. The precious metal finished the session at 1634.65.
Cryptocurrencies edged lower on Tuesday’s session. Bitcoin, Litecoin, and Ethereum fell and finished the session at 9360.00 BTCUSD, 70.18 LTCUSD, and 247.82 ETHUSD.
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