The dollar fell against a wide range of currencies today after the US Federal Reserve suddenly cut interest rates again and major central banks took steps to ease the dollar shortage and provide additional liquidity.
Pressure is growing on central banks to intervene to restore calm to financial markets, which have been hit by a worsening crisis caused by the spread of the Corona virus.
The US central bank cut the target range for interest rates to between zero and 0.25 percent on Sunday, US time, and added that it would raise its budget by at least $ 700 billion in the coming weeks.
The Bank of Japan said at an emergency meeting that it would buy more corporate bonds and commercial debt and establish a new corporate lending program to join in global response measures to the outbreak that arose in China and then moved to dozens of other countries and killed more than 5,800 people.
Five other central banks cut the cost of the swap lines to facilitate the dollar’s provision to their financial institutions, which are facing pressure in the credit markets.
Analysts say the dollar’s decline is likely to be short-lived because its shortage in the global financial system means that there will be continued and long-term demand in the spot market.
The dollar fell 1.2 percent to 106.70 yen today, Monday, to exacerbate its losses after the central bank's decisions.
The dollar also fell against the pound sterling by 0.4% to $ 1.2338, but saw no change against the euro, recording $ 1.1126.
The dollar fell 0.15% to 0.9493 Swiss francs.