The dollar dropped to a two-and-a-half year low as fast-tracked plans to roll out a coronavirus vaccine in the US bolstered appetite for risk assets.
The Bloomberg Dollar Spot Index fell as much as 0.2 per cent to an April 2018 low after US officials said vaccinations may start in less than three weeks. The New Zealand dollar, the pound and the Norwegian krone led gains against the greenback in Asia trading on Monday.
“The vaccine news is favouring the view of a sooner-rather-than-later global economic recovery with the USD losing its safe haven appeal along the way,” Rodrigo Catril, a currency strategist at National Australia Bank in Sydney, said.
“This is a risk-positive, USD-negative backdrop, especially with the Fed likely to remain ultra-dovish for some time.”
The dollar has fallen more than 11 per cent from its record high in March as investors cheer the prospect of a viable vaccine and prospects of improving global growth.
Morgan Stanley recommends selling the dollar in favour of stocks and credit, while Goldman Sachs prefers shorting the US currency against developing nation peers including the Mexican peso and South African rand.
“Fund flows are now showing the expected rotation into EM FX,” Goldman strategists including Zach Pandl wrote in a note. “We would be reluctant to back away from USD shorts with that important tailwind now in place.”
Specs
Engine: Electric motor generating 54.2kWh (Cooper SE and Aceman SE), 64.6kW (Countryman All4 SE)
Power: 218hp (Cooper and Aceman), 313hp (Countryman)
Torque: 330Nm (Cooper and Aceman), 494Nm (Countryman)
On sale: Now
Price: From Dh158,000 (Cooper), Dh168,000 (Aceman), Dh190,000 (Countryman)
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Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
The specs
- Engine: 3.9-litre twin-turbo V8
- Power: 640hp
- Torque: 760nm
- On sale: 2026
- Price: Not announced yet
Tewellah by Nawal Zoghbi is out now.
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Traits of Chinese zodiac animals
Tiger:independent, successful, volatile
Rat:witty, creative, charming
Ox:diligent, perseverent, conservative
Rabbit:gracious, considerate, sensitive
Dragon:prosperous, brave, rash
Snake:calm, thoughtful, stubborn
Horse:faithful, energetic, carefree
Sheep:easy-going, peacemaker, curious
Monkey:family-orientated, clever, playful
Rooster:honest, confident, pompous
Dog:loyal, kind, perfectionist
Boar:loving, tolerant, indulgent
