The US Dollar is enjoying its 7th consecutive session of gains against a basket of other major currencies, with the Dollar Index comfortably above 98.7, the highest it has been since October 2019. The greenback’s gains reflect, to some extent, the consolidation of the American currency as safe haven in the eyes of traders unsettled by the unknown risks posed by the coronavirus to the growth of the global economy.
The uncertainty is generating unusually low volatility in foreign exchange markets and in such a scenario, FX traders look to hold higher yield currencies, with the greenback being especially appealing in this respect.
