· The dollar fell against the yen and the Swiss franc on Thursday after the first coronavirus infection of unknown origin was confirmed in the United States, adding to fears of a pandemic.
The dollar also fell from a three-month high versus the pound and declined versus the euro as 10-year U.S. Treasury yields crashed to a record low as concerns grew over whether the world’s largest economy was prepared for the epidemic.
Other currencies were locked in narrow ranges as traders nervously monitor the global spread of the coronavirus that emerged in China late last year.
The dollar fell 0.35% to 110.06 yen, extending a pullback from a 10-month high of 112.23 yen reached on Feb. 20.
The dollar also fell 0.35% to 0.9735 Swiss franc, a currency that is traditionally sought as a safe haven.
Benchmark 10-year U.S. Treasury yields slumped to a record low of 1.2970% in Asia on Thursday.
The pound rose 0.27% to $1.2933. Sterling hovered near a two-week low versus the euro, at 84.46 pence per euro.
The new round of talks between Britain and the EU is scheduled to start on Monday, but comments from both sides suggest their views on the scope of a fee-trade agreement differ greatly.
The euro rose 0.24% to $1.0902 as traders pondered how European officials would respond to a weakening economic outlook.
· U.S. health officials confirmed the first possible community transmission of the coronavirus in America, a troubling sign that the virus could be spreading in local cities and towns.
The Centers for Disease Control and Prevention doesn’t know exactly how the California patient contracted the virus. The individual is a resident of Solano County and is receiving medical care in Sacramento County. The patient didn’t have a relevant travel history or exposure to another patient with the virus, the CDC said.
· South Korea’s central bank kept interest rates unchanged on Thursday, dashing expectations for a cut, even as the rapid spread of the coronavirus in Asia’s fourth-largest economy threatened to derail growth.
The Bank of Korea’s policy board held the base rate steady at 1.25%, a decision that was predicted by only 10 of 26 economists surveyed by Reuters. The central bank cut rates in July and October last year.
· A woman working as a tour-bus guide in Japan tested positive for the coronavirus for a second time, Osaka’s prefectural government said on Wednesday, the first person in the country to do so amid growing concerns about the spread of the infection.
The second positive test comes as the number of confirmed cases in Japan rose to 186 by Thursday from around 170 the day before. Tokyo has urged big gatherings and sports events be scrapped or curtailed for two weeks to contain the virus while pledging the 2020 Olympic Games will still go ahead in the city.
The health ministry confirmed the case was the first in Japan where a patient tested positive for coronavirus for a second time after being discharged from hospital, the Nikkei newspaper said.
· The United States and South Korea postponed joint military drills on Thursday to limit the spread of coronavirus, as the number of infections outside China, the source of the outbreak, for the first time surpassed those appearing in the country.
Taiwan raised its epidemic response level to the highest as it readied a $2 billion package to cushion the impact of the coronavirus outbreak on its export-reliant economy.
Brazil confirmed Latin America’s first infection and the new disease - COVID-19 - was also detected for the first time in Pakistan, Sweden, Norway, Greece, Romania and Algeria. China reported 433 new cases on Thursday, against 406 a day earlier.
Brazil’s first case coincided with the carnival holiday, a peak time for tourism. Brazil’s stock index fell more than 7%.
South Korea reported another 334 new coronavirus cases on Thursday, pushing its total to 1,595, the most in any country other than China.
· Regions in China at low risk for the coronavirus should resume visa and passport services for both Chinese and foreign travelers to help the nation get back to work, immigration authorities said on Thursday.
· China’s central bank said on Thursday that it will ensure ample liquidity through targeted reserve requirement ratio (RRR) cuts in appropriate time.
The People’s Bank of China (PBOC) will as far as possible reduce the impact of the coronavirus epidemic to help achieve economic goals for this year, PBOC vice governor Liu Guoqiang said at a presser in Beijing.
· Iraq reported the first case of coronavirus in the capital Baghdad on Thursday, its sixth in total.
A man contracted the virus after a trip to Iran, the health ministry said in a statement. He was in “good health” in a Baghdad hospital, it added.
· Oil prices fell for a fifth day on Thursday to their lowest since January 2019 as a growing number of new coronavirus cases outside of China fuelled fears of a pandemic which could slow the global economy and lower crude demand.
Brent crude LCOc1 was down 63 cents, or 1.2%, at $52.80 a barrel at 0414 GMT. The contract earlier fell to as low as $52.57, the lowest since Jan. 2, 2019.
West Texas Intermediate (WTI) futures CLc1 fell by 65 cents, or 1.3%, to $48.08 a barrel. It earlier fell to as low as $47.84, the lowest since Jan. 4, 2019.
In the five trading sessions through Thursday, Brent has dropped 11%, while WTI has declined 10.6%, their biggest five-day percentage losses since August 2019.
Reference: Reuters ,CNBC
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