Expanding coronavirus fears noticed the dollar topped the major winner in currencies last week, and analysts are expecting further rises — principally because of to a deficiency of possibilities.

The dollar index, which steps the greenback compared to a basket of big currencies, rose by about .8% final 7 days, just before slipping back Friday pursuing some disappointing economic data. Considering the fact that mid-January when the outbreak of the new coronavirus took keep, the dollar index is up around 2.5%, and on Monday was trading all around .14% increased at 99.399.

In an outlook notice entitled “The greenback way or the freeway,” ING strategists flagged an “alternative point of view” powering the modern dollar toughness: “that buyers are quintessentially missing choices in the G-10 room.”

“A rebound in the most uncovered currencies to China might nevertheless not be a story for following week (even if possibility recovers), even though grim information ought to continue to keep JPY (yen) and EUR (euro) not able to get well,” Francesco Pesole, forex strategist at ING, claimed in the notice published Friday. “With no solutions in G-10, the dollar can hold on to its throne for now.”

On Monday he reiterated that “the dollar stays the currency of alternative in G-10 place.”

JPMorgan analysts Daniel P Hui and Benjamin Shatil highlighted that even though international exchange marketplaces experienced in some approaches reacted to the new coronavirus outbreak in the expected risk-on/risk-off manner, there was a “troubling improvement whereby some ‘safe haven’ currencies have been nearly anything but.”

The Japanese yen, for instance — ordinarily seen as an additional risk-free-haven forex — has been strike tricky by the spread of the virus. Indeed, the power of the dollar index last 7 days was pushed by a sharp move higher in USD/JPY. As of Sunday, Japan had 132 verified situations of the virus, according to the Earth Wellness Group, which integrated 27 new cases in contrast to the day before.

On Monday, the greenback slipped .6% to 120.15 yen, but was continue to up virtually 1% more than the past 7 days.

JPMorgan’s Hui and Shatil argued that the checklist of viable risk-free currencies had narrowed to just the Swiss franc and U.S. greenback, with the yen no extended a defensive engage in.

“The bias is for the default USD bid to persist on risk of even further growth downgrades and serious Japanese and European weakness,” the analysts claimed on Friday.

Speaking to CNBC Monday, David Pierce, director at GPS Capital Markets, agreed that the harmless-haven enjoy was proving tricky for investors throughout unique asset markets.

“It’s not just the greenback, it is the Treasurys that have been really secure. And we’re seeing a great deal of dollars coming out of fairness and into much more extensive-time period steady-type investments like bonds,” he told CNBC’s “Street Indications.” “The greenback has obviously been one that has been really solid for us … Folks are truly seeking for risk-free havens and it truly is a difficult come across appropriate now.”

On Monday, a flight to U.S. Treasury bonds pushed yields — which move inversely to prices — sharply decreased. The 10-yr Treasury produce slipped to 1.37%, its least expensive degree due to the fact 2016.

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