US dollar rises on risk aversion

New York: The US dollar climbed in late trading on Friday as the COVID-19 pandemic restrained market participants’ appetite for risk.

The dollar index, which measures the greenback against six major peers, was up 0.39 per cent at 100.5639 in late trading.

In late New York trading, the euro decreased to $1.0811 from $1.0851 in the previous session, and the British pound decreased to $1.2272 from $1.2396 in the previous session. The Australian dollar fell to $0.5998 from $0.6048, Xinhua reported.

The US dollar bought 108.27 Japanese yen, higher than 107.85 Japanese yen of the previous session. The US dollar rose to 0.9760 Swiss franc from 0.9730 Swiss franc, and it fell to 1.4154 Canadian dollars from 1.4190 Canadian dollars.

Global recession fears are terrifying the markets amid the COVID-19 crisis, leading to a rise in general risk aversion and thus more demand for the dollar as a safe haven, experts noted.

On the data front, US employers cut 701,000 jobs in March, and the unemployment rate soared to 4.4 per cent, showing the first job decline in a decade, the US Bureau of Labor Statistics reported on Friday.

“The changes in these measures reflect the effects of the coronavirus (COVID-19) and efforts to contain it,” the bureau said.

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