Virus spread beyond China drives investors to dollars

SINGAPORE (Reuters) - Asian currencies slid on Monday as the rapid spread of the coronavirus outside China drove fears of a pandemic and sent investors flocking to gold and the dollar for safety.

Italy, South Korea and Iran posted sharp rises in infections over the weekend. South Korea now has more than 760 cases, Italy more than 150 and Iran 43 cases.

The World Health Organization said it was worried about the growing number without any clear link to the epicentre of the outbreak in China.

"The omens are not particularly good today," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. "The presumption was that we would see intermediate supply chains quickly reconnected and I think the market's had to go through a period of questioning that logic."

The Chinese, Australian, New Zealand, Singapore and Taiwan currencies were all on the back foot, with the Aussie carving a fresh 11-year low in early trade.

The Korean won plunged nearly 1% to a six-month low.

Political turmoil in Malaysia added pressure to the ringgit and sent it 0.6% lower to its weakest since September.

Yet risk aversion, which also saw stocks tumble and gold and bonds rise, offered surprisingly little support to the yen.

After partially recovering last week's drop on Friday, it traded flat at 111.55 per dollar as Asian investors discount its safety value owing to Japan's virus exposure.

https://www.reuters.com/article/uk-global-forex/virus-spread-beyond-china-drives-investors-to-dollars-idUSKCN20I05B

It appears the markets are going to take a hit for awhile. Trade with China is very important to the world. How it eventually threarens Chins is an unknown.

How long before the democrats blame Trump?

Quote from: supsalemgr on February 24, 2020, 04:05:39 AM
It appears the markets are going to take a hit for awhile. Trade with China is very important to the world. How it eventually threarens Chins is an unknown.

How long before the democrats blame Trump?

Probably today.

Quote from: Solar on February 23, 2020, 07:31:55 PM
Virus spread beyond China drives investors to dollars

SINGAPORE (Reuters) - Asian currencies slid on Monday as the rapid spread of the coronavirus outside China drove fears of a pandemic and sent investors flocking to gold and the dollar for safety.

Italy, South Korea and Iran posted sharp rises in infections over the weekend. South Korea now has more than 760 cases, Italy more than 150 and Iran 43 cases.

The World Health Organization said it was worried about the growing number without any clear link to the epicentre of the outbreak in China.

"The omens are not particularly good today," said Ray Attrill, head of FX strategy at National Australia Bank in Sydney. "The presumption was that we would see intermediate supply chains quickly reconnected and I think the market's had to go through a period of questioning that logic."

The Chinese, Australian, New Zealand, Singapore and Taiwan currencies were all on the back foot, with the Aussie carving a fresh 11-year low in early trade.

The Korean won plunged nearly 1% to a six-month low.

Political turmoil in Malaysia added pressure to the ringgit and sent it 0.6% lower to its weakest since September.

Yet risk aversion, which also saw stocks tumble and gold and bonds rise, offered surprisingly little support to the yen.

After partially recovering last week's drop on Friday, it traded flat at 111.55 per dollar as Asian investors discount its safety value owing to Japan's virus exposure.

https://www.reuters.com/article/uk-global-forex/virus-spread-beyond-china-drives-investors-to-dollars-idUSKCN20I05B

Interesting how the entire world see the US as a safe haven, but if you listen to the LSM, Trump put us on a path for a huge collapse.
Gee, now what does the rest of the world know, that the DNC doesn't?

Quote from: s3779m on February 24, 2020, 04:33:31 AM
Probably today.

When it comes to Trump you know every thing is retroactive.