The greenback plunged against the yen Tuesday as underlying issues concerning the economic shock wrought by the coronavirus crisis kept many investors on edge.
The pound clawed back some recent losses towards the greenback; however, sentiment for sterling remains fragile after British PM Boris Johnson was moved to intensive care after his health deteriorated.
The yen cheered Japanese Prime Minister Shinzo Abe’s unveiling of a massive fiscal stimulus worth nearly $1 trillion to offset the financial impact of the pandemic.
Traders warned that further gains in the yen could also be limited as a result of Abe has agreed to declare a state of emergency for Tokyo and other elements of Japan to curb coronavirus infections.
Many traders are searching for indicators of a peak in the pandemic; however, some analysts warn of volatility given the unpredictable behavior of the previously unknown virus.
The greenback dropped 0.43% to 108.76 yen on Tuesday. Against the euro, the dollar eased to $1.0837.
The greenback came into Asian trade on a positive be aware as risk sentiment improved after the governors of New York and New Jersey pointed to tentative signs that pandemic in their states was starting to plateau; however, some traders remain cautious.