The dollar and the yen jump after Trump was infected with Corona
The dollar jumped and the safe-haven yen reached its highest levels in the week today, Friday, after US President Donald Trump said he had contracted Covid-19 and was in quarantine, according to Reuters.
The news may cause a new wave of volatility in the market as investors prepare for the presidential elections scheduled for November, which will witness intense competition.
The US currency rose about half a percent against the risk-sensitive Australian and New Zealand dollars, while the yen rose by 0.3 percent to 105.27 per dollar, its highest since Monday.
The euro fell 0.3 percent to $ 1.1716.
The yen gained larger against other currencies, in light of a widespread shift away from riskier assets and commodities.
Trading volumes in Asia were thin due to holidays in China.
Trump said on Twitter that he and first lady Melania Trump had tested positive for the new Corona virus, and that they would be quarantined.
Analysts say this could turn his campaign upside down, but the medium-term implications for currencies will not be immediately clear.
"It could potentially reduce Trump's ability to campaign," said Shawn Callow of Westpac.
He added, "It also hurts him, as the public discourse does not cause much concern. It puts the Covid crisis itself again in the foreground and in the center ... But will this change the opinion polls?"
I simply don't know. ”
The Australian dollar last traded at $ 0.7144 and the New Zealand dollar at 0.6629.
Against a basket of six competing currencies, the dollar rose 0.2 percent to 93.899.
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