Sanofi to donate 100 million doses of hydroxychloroquine across 50 countries

The dollar's dominance will slowly melt away over the coming year on weakening global demand and a sombre U.S. economic outlook, according to a Reuters poll of currency forecasters whose views depend on there being no second coronavirus shock.

Despite fears a surge in new Covid-19 cases would delay economies reopening and stymie a tentative recovery, world stocks have rallied - with the S&P 500 finishing higher in June, marking its biggest quarterly percentage gain since the height of the technology boom in 1998.

Caught between bets in favour of riskier investments, weak U.S. economic prospects as well as an easing in the thirst for dollars after the Federal Reserve flooded markets with liquidity, the greenback fell nearly 1.0 per cent last month. It was its worst monthly performance since December.

While there was a dire prognosis from the top U.S. medical expert on the coronavirus' spread, the June 25-July 1 poll of over 70 analysts showed weak dollar projections as Fed Chair Jerome Powell on Monday reiterated the economic outlook for the world's largest economy was uncertain.

"The dollar rises in two instances: when you see risk off or when there is a situation where the U.S. is leading the global recovery, and we don't think that's going to be the case anytime soon," said Gavin Friend, senior FX strategist at NAB Group in London.

"The U.S. is playing fast and loose with the virus, and chronologically they're behind the rest of the world."

Currency speculators, who had built up trades against the dollar to the highest in two years during May, increased their out-of-favour dollar bets further last week, the latest positioning data showed.

About 80 per cent of analysts, 53 of 66, said the likely path for the dollar over the next six months was to trade around current levels, alternating between slight gains and losses in a range. That suggests the greenback may be at a crucial crossroad as more currency strategists have turned bearish.

But more than 90 per cent, or 63 of 68, said a second shock from the pandemic would push the dollar higher. Five said it would push the U.S. currency lower.

Much will also depend on debt servicing and repayments by Asian, European and other international borrowers in U.S. dollars.

While an early shortage of dollars in March from the pandemic's first shock pushed the Fed to open currency swap lines with major central banks, international funding strains have eased significantly since. In recent weeks, usage of the facility has reduced dramatically.

That trend is expected to continue over the next six months with major central banks' usage of swap lines to "stay around current levels", according to 32 of 46 analysts. While 13 predicted a sharp drop, only one respondent said use of them would "rise sharply".

The dollar index, which measures the greenback's strength against six other major currencies, has slipped over 5 per cent since touching a more than three-year high in March.

When asked which currencies would perform better against the dollar by end-December, a touch over half of 49 respondents said major developed market ones, with the remaining almost split between commodity-linked and emerging market currencies.

"The dollar is so overvalued, and has been overvalued for a long time, it's time now for it to come back down again, as we head towards the (U.S.) election," added NAB's Friend.

Over the last quarter, the euro has staged a 1.8 per cent comeback after falling by a similar margin during the first three months of the year. For the month of June, the euro was up 1.2 per cent against the dollar.

The single currency was now expected to gain about 2.5 per cent to trade at $1.15 in a year from around $1.12 on Wednesday, slightly stronger than $1.14 predicted last month. While those findings are similar to what analysts have been predicting for nearly two years, there was a clear shift in their outlook for the euro, with the range of forecasts showing higher highs and higher lows from last month.

"In comparison to even a month or two ago, the outlook in Europe has improved significantly," said Lee Hardman, currency strategist at MUFG.

"I think that makes the euro look relatively more attractive and cheap against the likes of the dollar. We're not arguing strongly for the euro to surge higher, we're just saying, after the weakness we have seen in recent years, there is the potential for that weakness to start to reverse."

Washington, Jan 12: US president Donald Trump said Saturday the United States was monitoring Iranian demonstrations closely, warning against any new “massacre” as protests broke out after Tehran admitted to shooting down a passenger plane.

Iran said earlier it unintentionally downed a Ukrainian jetliner outside Tehran, killing all 176 people aboard, in an abrupt about-turn after initially saying that it had crashed due to mechanical failure. The firing came shortly after Iran launched missiles at bases in Iraq housing American forces.

President Hassan Rouhani said a military probe into the tragedy had found that “missiles fired due to human error” brought down the Boeing 737, calling it an “unforgivable mistake.”

Trump told Iranians -- in tweets in both English and Farsi -- that he stands by them and is monitoring the demonstrations.

“To the brave, long-suffering people of Iran: I've stood with you since the beginning of my Presidency, and my Administration will continue to stand with you,” he tweeted.

“There can not be another massacre of peaceful protesters, nor an internet shutdown. The world is watching,” he added, apparently referring to an Iranian crackdown on street protests that broke out in November.

“We are following your protests closely, and are inspired by your courage," he said.

The new demonstrations follow an Iranian crackdown on street protests that broke out in November. Amnesty International has said it left more than 300 people dead. Internet access was reportedly cut off in multiple Iranian provinces ahead of memorials planned a month after the protests.

On Saturday evening, police dispersed students who had converged on Amir Kabir University in Tehran to pay tribute to the victims, after some among the hundreds gathered shouted "destructive" slogans, Fars news agency said.

State television reported that students shouted "anti-regime" chants, while the news agency Fars reported that posters of Soleimani had been torn down.

Tokyo, Feb 20: One more Indian on board the cruise ship Diamond Princess quarantined off the coast of Japan was tested positive for novel coronavirus, the Indian Embassy in Tokyo said on Wednesday, adding that all seven Indian nationals infected with the virus have been shifted to hospitals in Japan for treatment.

"1 Indian crew who tested positive for #COVID19 among 88 new cases yesterday on #DiamondPrincess taken to hospital for treatment. Indians receiving treatment responding well. From today, the disembarkation of passengers only started, likely to continue till 21 Feb," the embassy tweeted.

"As of 2100 JST, altogether 7 Indian nationals (crew members on board #DiamondPrincess) are receiving treatment in hospitals in Japan, after testing positive for #COVID19 over last few days. Their health conditions are improving. 
@MEAIndia," the following tweet read.

A total of 138 Indians, including 132 crew and 6 passengers, were among the 3,711 people on board the luxury cruise ship which was quarantine off Japan on February 5 after it emerged that a former passenger had tested positive for the virus.