Virus continues to stir the Forex market. Current fall in the trade of Asian Pacific region is solely associated with the impacts of renewed lockdowns.
Renewed Lock down and wave of virus:
Recent renewed lockdown and restrictive measures have questioned the global economic recovery. The trade of this region has to face the brunt of these restrictive measures. Almost all the currencies lost ground against their counter currencies. The prices toppled and disappointed the traders. The fear of the virus continues to drop the price of currencies. The fear of the brutal wave of virus is currently the greatest hurdle for smooth trade. The trade of Asian Pacific region is no exception. Obviously It affects its trade as well.
Trade of Asian Pacific Region:
All of the hopes of economic recovery are currently on the edge. Traders are really concerned about the trade of the near term. The recent fall in the worth of the currencies of this region reflects this concern. China is the second powerful economy but still CSI 300 nudged lower by 1.32%. By keeping in view the worth of China, this fall is significant for the traders. Similarly Hong Kong has to deal with the disturbing decrease in the Hang Seng Index by 1.5%. ASX 200 of Australian economy has also fallen about 0.6%. Nikkei Index of Japan suffered loss of about 0.1% as well. All of these figures are quite disappointing. Thus virus still manages to fade the excitement of the traders in this region.
Trade of USD & Yen:
The significant feature of Forex market is that the fall of a currency helps to boost the price of another currency. The current falling scenario of the currencies of Asian Pacific region has affected USD. It has provided a solid ground for the rise in the worth of USD. Similarly JPY (Japanese Yen) also spiked up and therefore exceeded the expectations of traders.