Global Demand For Liquid Assets Sees Dollar Surge As Sterling Hits A 35 Year Low Against The Greenback

Xe Corporate

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

The figures are based on the live mid-market rate, correct as of 07:30 GMT on 19/03/2020, and are provided for indicative purposes only. Live mid-market rates are not available to consumers and are for informational purposes only. The rates we quote for money transfer can be selected via the page on our website ‘Live Money Transfer rates’.

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