FOREX-Dollar falls as relief closes, higher interest in risky assets

LONDON, Apr 27 (Reuters) – The dollar fell across the board on Monday as traders were less reluctant to take risky assets amid a decline in coronavirus blockades in several countries.

* The US currency was weakening against the yen and the euro due to a better disposition against Italy and after announcements by the Bank of Japan of additional measures to support its economy.

* “The dollar kicked off the week on the wrong foot … reflects more risk trend,” said Lee Hardman, currency analyst at MUFG. “Most notably, yesterday there was a sharp drop in the reported number of deaths from COVID-19 in various countries … supporting the effectiveness of the closure measures.”

* S&P affirmed Italy’s BBB rating on Friday, although many expected a downgrade, underpinning the euro by limiting the escalation of an economic and political crisis on the continent.

* The Bank of Japan announced monetary stimulus measures on Monday and promised to buy an unlimited amount of bonds to keep borrowing costs down.

* Against the yen, the dollar was down 0.4% at 107.11 yen, having earlier fallen to a two-week low of 107.05. The euro appreciated 0.3% at $ 1.0848.

* Traders’ attention is now on the two-day meeting of the Federal Reserve that ends on Wednesday, and on a meeting of the European Central Bank (ECB) on Thursday.

(Report by Olga Cotaga; Edited in Spanish by Janisse Huambachano)

Written by Argentina News

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