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Message: <blockquote data-quote="nicjosh83" data-source="post: 25965626" data-attributes="member: 569114">Link - <a href="https://thenewdaily.com.au/finance/finance-news/2020/06/10/aud-dollar-currency-coronavirus/" target="_blank">https://thenewdaily.com.au/finance/finance-news/2020/06/10/aud-dollar-currency-coronavirus/</a>Why the dollar has gainedThe Aussie dollar broke the 70 US cents mark for several reasons, according to Ashley Glover, CMC Markets’ head of sales trading for APAC and Canada.Firstly, the iconic greenback is losing its shine with investors.In times of crisis, investors often rush to convert their cash to US dollars because it has a reputation as a ‘safe haven’ currency – its value remains relatively stable.This is exactly what happened at the beginning of the pandemic: Investors holding Australian dollars were quick to swap them for greenbacks after China, our largest trade partner, shut down large parts of its economy.But now that China and Australia are reopening their economies faster than expected, and performing much better than the US, Mr Glover said investors were increasingly happy to hold Australian currency.The second driver of the Aussie dollar’s gains is that investors have shifted to a ‘risk on’ market.This is when investors move their money from ‘safe haven’ assets (low-risk investments like cash and bonds) to riskier ones such as stocks.Mr Glover said this ‘risk on’ attitude has been spurred on by the “significant global stimulus packages” rolled out by governments worldwide to support the economy.The Australian dollar hit its recent low of 57 US cents on March 19 – the day the Reserve Bank announced it would engage in <a href="https://thenewdaily.com.au/finance/finance-news/2020/03/19/rba-virus-quantitative-easing/" target="_blank">quantitative easing for the first time in history</a>. (The US sharemarket took off at roughly the same time, too.)</blockquote>

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