A greater demand for the dollar amid the unrest and liquidity fear

Dollars’ demand increased on Monday, with a wave of avoiding risks that caused the global financial markets to disappear. The difference in yields between the contracts associated with US bonds has dropped for two years and treasury effects for the same term, a scale used as an indication to measure demand for the global reserve currency to the lowest level since November. The basic exchange between the yen and the dollar also dropped three months to levels not recorded since December, and the corresponding exchanges in the euro and the pound sterling were similar declines. Nevertheless, these movements are still limited and do not indicate great concern about market stability. Financial markets under pressure, investors are carefully following the development of financial markets to measure the level of financial pressure, and the potential impact of US interest rates, amid a sharp -risk asset wave that is raised by President Donald Trump’s hard approach to the imposition of customs duties on a global scale. With the absence of indicators of the administration’s decline in this road, and China’s approach to the reaction, the markets are now valid for more than 100 basis points in interest rates by the Federal Reserve by the end of the year. “We can see a microcosm of what happened during the pandemic of the Corona, when investors and companies rushed to finance funding, which led to the liquidity in the US bond market,” Nomara Securities said in Tokyo. He added: “Although the exchange contracts have decreased significantly to reflect the expectations of reducing interest, investors and traders find it difficult to buy effects,” which prevents treasury yields from keeping up with this decline. Kushimizo indicated that if the highest US fees come into effect on April 9 as announced, demand for financing in dollars could rise more, unless the federal intervention by pumping liquidity or reducing interest. The price differences in the immediate and futures markets also showed indications of a slight width, but it did not reach the levels that largely affect the amount of transactions, according to the trader of a resident currency in Asia, which chose not to be identified because he was not authorized to speak in public.