US dollar pulls back as panic selling eases, on course for biggest loss in decade

The Business Times | Mar 27, 2020 at 12:00 AM
  • The dollar was on track for its biggest weekly fall in more than a decade on Friday as a series of stimulus measures around the world, including a US$2.2 trillion US package, helped temper a rout in global markets triggered by the coronavirus pandemic.
  • Currency basis swap spreads, the premium investors need to pay over interbank rates to fund dollar through foreign currency swaps, have fallen considerably.
  • The Mexican peso dropped 1.5 per cent, giving up a part of its recovery this week, after credit ratings agency S&P on Thursday cut Mexico’s sovereign rating to BBB from BBB+ in anticipation of an economic hit from the coronavirus pandemic and a plunge in oil prices.