USD and Yen Trading Low After Equities Performed Well in the US
Aligned with the improved sentiments among the investors, the prices of the Yen and Dollar were trading at the lower ends as investors seemed to have decided to go for the riskier currencies. As most governments across the globe resisted imposing any new kind of restrictions, including new lockdowns despite the increase in the infections related to the Coronavirus pandemic, investors have gone bullish in their trading, at least for now.
According to a recent report of Reuter, Covid-19 cases have surged to a new record level in the past week, but a decrease in the hospitalization rate in the US has encouraged the revival of the equities and, to some extent US Dollar too. The decreased rate of admission in hospitals has really sent positive signals to the investors who have come out of their defensive positions and now seem to be back into the global trade with gusto.
The euro was trading at the level of $1.1352 in the early hours of trading in Asia while the valuation of the pound is around $1.35 which is its highest value since the 19th of November this year. It is important to note that the dollar index has slipped to the value of 95.862 which is its lowest level in a month.
According to the technical experts, it will be too early to pronounce any verdict regarding the recovery of the markets as all these positions keep changing on a short-term basis. These trends and numbers should be taken with a pinch of salt, and caution must be exercised before making any definite conclusion out of these numbers.
The price valuation of these currencies is aligned with the broader market trends related to the equity and valuation of the companies. Both the Dow Zone and S&P 500 clocked their all-time high levels on Wednesday, which is a quite good indication for the investors across the spectrum. The valuation of the Yen, Turkish Lira, and Australian Dollar were at $0.0086, $0.7254, and $0.079, respectively, and investment professionals believe that the trend in the coming days will depend on the market fluctuations and rate of Covid infections.