Cash is King! Dollar reached the high since March 2017
Countries are actively implementing more stimulus measures but so far financial markets are still gloomy. The stimulus effect of the measures is short-lived as people are worried the global epidemic cannot be alleviated in the short term. It is highly expected that the global economy will also collapse, and the investment market is just reflecting this expectation.
The dollar continued to soar on Wednesday, hitting highs against several major currencies, including the Pound, the Australian dollar and the New Zealand dollar. The dollar index rose to 101.74, the highest level since March 2017.
The new coronavirus pandemic caused a financial chaos. During the period, all assets were less attractive than the dollar. Dollar now become the safest assets.
ZFX analyst Jacob Leung said the sell-off was to “cash out”, and cash is dollar. This explains the tightening liquidity in market, which means the tightening of the dollar.