Safe Haven Yen Gains on Heels of Coronavirus Outbreak – 13 February, 2020

Safe haven currencies were in higher demand as doubts and skepticisms grew over the extent of the outbreak of the coronavirus. Against the dollar and Swiss franc, the euro hit multi year lows, just ahead of the release of data about gross domestic product in the euro zone. The outbreak of the coronavirus has caused a break in consumer spending in China, with uncertainty over the extent of the outbreak causing the yuan to nurse losses after numbers documenting the increase of the infection rose drastically on a new method of diagnosing possible patients. The yen was steady at 109.81 per dollar, having gained 0.25% the previous session. The onshore yuan fell by 0.09% to 6.9841 per dollar, while the offshore yuan dropped 0.2% to 6.9860. The euro dipped to its lowest since April 2017, shedding 0.1% to $1.0827. The pound gained 0.64% to $1.2046 on expectations that Prime Minister Boris Johnson appointing a new finance minister will increase fiscal spending.