Market Data
April 6, 2020
CRU: Dollar Remains Strong as Commodity Currencies Hit
Written by Ross Cunningham
By CRU Senior Cost Analyst Ross Cunningham, from CRU’s Steel Monitor
Covid-19 has spread across the world at alarming rates. As of March 28, the pandemic has reached 177 countries and shows little sign of letting up. When fighting a global health and economic crisis unlike anything ever seen before, there will be no winners—only those that lose a little less than others. Commodity currencies have fallen sharply since the start of the year due to Covid-19. This fall reflects two factors—a large decline in the global demand for commodities; and a “risk off” sentiment that led to record capital flight out of emerging markets (EMs). All of the capital that entered EMs in 2019 was taken out in the first three months of 2020.
