The U.S. dollar spot index recorded the biggest gain since March, and the pound sterling tumbled because the Brexit negotiations were not completed before the deadline, and the mutation of the new crown virus strain jeopardized the UK’s supply chain to the EU.
The Bloomberg Dollar Spot Index rose 0.9%, and the intraday gain was as high as 1.4%. The 0.9% drop last week was wiped out.
The U.S. dollar has generally risen against G-10 currencies, the Norwegian Krone is at the bottom, and the Krone has fallen the most against the U.S. dollar since June. Crude oil prices have plummeted due to market concerns that the epidemic will damage demand.
The pound/dollar fell 1.7% to 1.3291; it fell 2.5% during the intraday session to 1.3188, the largest intraday drop since March 18, after another deadline for Brexit negotiations expired on Sunday, and Britain’s largest port stopped All transportation to the European Union.
The cost of hedging fluctuations in the pound sterling in the coming week will rise.
The pound sterling also fell against the euro. The euro rose 1.7% to 92.17 pence against the pound at one point, after London was under emergency lockdown; the euro fell 0.6% against the dollar and fell 1% during the intraday session.
The dollar/yen rose 0.2% to 103.53; previously it rose 0.6% to 103.89.