March 19, 2020 — 2 min read
The dollar's status as the worlds reserve currency has been reconfirmed on a unprecedented scale this week as banks and businesses globally race to ensure they have cash available to fund themselves for an extended period.
Demand for the dollar has seen new lows against a basket of Asian currencies and traditional safe havens such as gold and longer dated US treasuries have also been sold.
Sterling tested 1.15 which is a level not seen since 1985.
This follows unprecedented action by the US Federal Reserve in the last few weeks to try to ensure demand does not outstrip supply.
Other central banks are continuing to follow suit with the Bank of England, Bank of Japan, ECB and Reserve Bank of Australia all announcing major measures in the last 24 hours to ensure money supply is continued and support is provided to their respective regions.
At the time of writing.
GBPUSD - 1.1549
GBPEUR - 1.0610
EURUSD - 1.0880
GBPAUD - 2.0350
GBPNZD - 2.0585
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