The corona virus destroyed the dollar that rules the economies of the world

 29 Jul 2020 ( IBTN Bureau )

The US dollar witnessed a sharp decline on Wednesday amid the Corona crisis. The US dollar is said to be at its lowest level in the last two years.

At the same time, pressure has been increased on the Central Banking System of the US 'Federal Reserve' to take necessary steps such as reduction in interest rates to prevent the decline.

Although the market expects the government to remain calm for the moment, some analysts speculate that the 'Federal Reserve' may take some far-reaching steps, given the way the Corona infection in the US and the tense environment is growing.

Derek Halpenny, head of research at MUFG Bank, one of Japan's largest banks, told news agency Reuters, "These things mean that we should expect more dismal conditions of economic growth." We should also focus on the US dollar to some extent.

The US dollar fell 0.4 percent against other currencies this Wednesday. This is the lowest level of US dollar since June 2018.

The US dollar has weakened 3% since the last meeting of the 'Federal Reserve'. US consumer confidence has weakened more than expected in July.

This indicates that people are reducing expenses due to increasing cases of corona infection.

"Given the concerns of the second wave of transition, the market feels that the Federal Reserve will decide to reduce interest rates," says Yujiro Goto, market expert at Nomura Security.


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