Dollar rises against yen as Japan prepares to declare state of emergency

LONDON, Apr 6 (Reuters) – The dollar stabilized on Monday against a majority of currencies but continued to appreciate against the yen, as investors processed data indicating that the rate of deaths from coronavirus in Europe is slowing as infections in Japan and other parts of Asia they continue to rise.

* As investors cautiously began to leave their “risk” mode, the yen fell, while emerging market currencies benefited from better market sentiment.

* “What we are seeing for the foreign exchange market is a weakness of the yen because the situation in Japan is worsening, to which is added a rebound in stocks,” said Kit Juckes, strategist at Societe Generale.

* The greenback rose 0.7% to 109.38 yen, its highest level in 10 days against the Japanese currency. Meanwhile, the euro was stable at $ 1.0805.

* The dollar index, which compares to the greenback with a basket of six rival currencies, was trading flat at 100.68 units.

* Juckes said the euro could be better positioned if some action occurs “around some version of a ‘coronabono’ at the Eurogroup meeting tomorrow (Tuesday).”

* Eurozone finance ministers will meet on Tuesday to decide on three options available as additional economic stimuli to mitigate the impact of the coronavirus pandemic.

* Italy reported its lowest number of coronavirus deaths in more than two weeks on Sunday, while France also reported a slowdown in deaths from the disease. Meanwhile, Germany presented the fourth consecutive fall of new infections.

* But on Monday Indonesia confirmed 218 new infections, the biggest increase in the country since the first cases were announced a month ago.

* Japan said it will declare a state of emergency that could start on Tuesday, as the lack of beds and the rapid increase in COVID-19 cases, especially in Tokyo, could collapse the country’s health system.

(Report by Olga Cotaga. Edited in Spanish by Marion Giraldo)

Written by Argentina News

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