As risk aversion once again takes over, the Dollar reverts to be the safe haven of choice for many investors, with the index that measures the performance of the greenback up by more than 0.6% during early Wednesday trading.
The mood in the markets became gloomy following the publication of a report from the IMF predicting a contraction of 3% for the global economy in 2020, the worst economic downturn since the great depression of the 1930s. As the realisation sinks in that a recession of epic proportions is coming, investors are once again seeking refuge in the US Dollar, especially as it isn’t yet clear when and how a return to normality will happen with many vital questions about our ability to deal with the virus remaining unanswered.
