Safe Haven Currencies Reign, Dollar Soars Against Euro – 17 February, 2020

Lower investor confidence in Germany as shown in a survey caused the dollar to rise to an almost three year high against the euro. For the first time since April 2017, the euro fell below $1.08, dipping 0.38% to $1.0793 earlier. Against the dollar, the euro has shed 3.7% of its value this year for its worst performance in five years. Worries that the spread of the coronavirus from China have impacted the global economy may also affect German growth in the first quarter. The dollar is at a 4 1/2 month high against a basket of major currencies, with other safe haven currencies also strengthening. The offshore yuan dipped 0.3% to 7.0109 against the dollar, hitting an eight day low against the greenback. The Australian and New Zealand dollars also fell to the greenback, with the Aussie shedding 0.4% and the kiwi dropping 0.78%.