2020.03.1920:50:00UTC+00Dollar Sees Another Strong Session, Records Fresh 3-year High

U.S. dollar gained against major currencies on Thursday, extending its reign to a third successive day, as its safe-haven status remained intact amid continued worries about the economic impact of the coronavirus pandemic, despite a slew of relief packages announced by global central banks.

The dollar index rose to 102.84 in late afternoon trades today and was last seen at 102.63, up nearly 1.5% from previous close.

Against the euro, the dollar firmed up to $1.0694, gaining more than 2%, and against pound sterling, it strengthened to $1.1523, up 0.8% from Wednesday's $1.1615. At its peak today, the dollar was $1.1472 at noon.

The Japanese Yen weakened to 110.95 a dollar, before recovering some lost ground. Still, at 110.61 a dollar, the currency was down as much as 2.3%.

The dollar was stronger by about 0.5% against the Aussie, with the AUD-USD pair quoting at 0.5744.

The Swiss franc was weak by 1.8% at $0.9858 and the loonie was down slightly at $1.4518.

After the European Central Bank (ECB) announced the launch of a ?750 billion ($820 billion) emergency bond purchase scheme on Wednesday, the Bank of England today cut its interest rate to a record low, and expanded its bond buying scheme and the targeted funding measure for small and medium businesses, extending further support to the UK economy amid the spread of the coronavirus, or Covid-19.

In a special meeting, the Monetary Policy Committee voted unanimously to increase the Bank of England's holdings of UK government bonds and sterling non-financial investment-grade corporate bonds by GBP 200 billion to a total of GBP 645 billion, the bank said.

The bank reduced its lending rate by 15 basis points to 0.1%, cutting the rate for the second time this month. It also decided on Thursday to enlarge the Term Funding for SME scheme.

In the U.S., President Donald Trump has signed a $100 billion emergency relief package that will benefit workers and the general public affected by COVID-19.

The package provides paid sick, family and medical leave; food and medical aid to coronavirus-hit people; expands unemployment insurance; and free testing for the virus.

The Families First Coronavirus Response Act, which the House of Representatives passed last week, was overwhelmingly approved by the Senate by a 90-8 vote Wednesday.

According to media reports, Japan is considering an economic package worth more than 30 trillion yen (239.83 billion pounds) to combat the widening fallout from the virus outbreak.

The Australian Central Bank lowered its interest rate to 0.25% - it's lowest ever as the coronavirus pandemic threatens to drag the country into its first recession since the early 1990s.