Yuan Dips on Virus Fears, Yen Firm Against Dollar – 27 January, 2020

Anxiety over the new coronavirus and the extent of the deadly disease’s impact on the economy caused the offshore yuan to drop to its lowest in a month. Investors flocked to the safe haven yen, boosting it to a three week high against the dollar, while oil prices tumbled. Travel bans have been enforced just ahead of the Lunar New Year, China’s busiest season for tourism, further creating fear that the virus will do further damage to the already weakened economy. At its weakest since December 30, the offshore yuan was trading at 6.9813 per dollar, while China’s onshore market was closed for the New Year. Against the dollar, the yen was steady at 109.01 per dollar, just below a January 8 high. After a 0.86% boost this week, the dollar index last stood at 97.932. The Australian dollar was near a three month low at $0.6754, and the New Zealand dollar was last standing just above a December low at $0.6541. Against the euro, the dollar last stood at $1.1021, its strongest since December, while the pound was stable at $1.3064 against the dollar and 84.37 pence per euro.