(CNBC) The U.S. dollar index, the Japanese yen and the Swiss franc rose on Monday morning, while the offshore yuan tumbled to a 2020 low as growing fears about the spread of a coronavirus from China pushed investors into safer assets.
“The dollar usually does strengthen as a result of anything that seems like it has the potential for physical chaos,” Juan Perez, senior foreign exchange trader and strategist, Monex, Inc.
The possibility of a rapid turnaround in the event the virus is contained explains the relatively muted move in the dollar, Perez said.
“We do think the dollar this week, if nothing improves, will continue on this strong run. But of course, anything at any moment can change if the headlines do turn, or if perhaps this is somehow curable then expect markets to turn around and the dollar to lose that safe-haven risk-off momentum.”
