The money will be used to help local governments and small and medium-sized businesses across America, which has become the epicenter of the global fight against coronavirus. The central bank’s decision to pump thousands of billions of dollars into the economy comes as data show that more than 16 million Americans have filed for unemployment benefits in the past three weeks. Six million workers affected by the pandemic alone submitted claims in the past week.
Businesses in all states have been ordered to close their doors in an attempt to stop the spread of the virus.
In the United States, 16,366 people died from coronavirus cancer.
The number of people infected is 459,699.
The pound, which was already strong on the day, extended its gains to hit a session high of $ 1.248.
This rose 0.8% on the day as risk appetite improved in all areas after the dollar fell.
Edward Moya, a senior market analyst at OANDA, a New York-based foreign exchange firm, said the U.S. currency seemed increasingly vulnerable in the midst of the crisis.
He said: “The dollar seems very vulnerable here in the short term as the Fed has impressed, which could keep pressure on the greenback.”
Earlier reports that the Bank of England temporarily agreed to lend money to the government to curb the spread of viral disease if funds cannot be immediately raised in debt markets have had little impact. impact on the British bond and money markets.
READ MORE: Pound Sterling vs. Last US Dollar: Pound Drops After Boris COVID Update
Andrew Mulliner, portfolio manager at Janus Henderson Investors, said the bank’s decision would solve the problem of quickly raising a lot of cash through traditional debt management operations in a market accustomed to stable and reliable issuance .
He said: “We consider this step to be more sensational in terms of news than any significant step in the type of monetary financing that invites comparisons with Zimbabwe.”
For the past few days, the pound has held up against the dollar.
But he failed to cross the $ 1.25 line.
Recent data released by the Office of National Statistics (ONS) has shown that gross domestic product increased by 0.1% over the period from December to February.
The move was not as good as the 0.2% expected in a survey of economists by Reuters.
Against the euro, the pound struggled to cross the 87.50 pence level.
While some European countries such as Austria and Denmark are preparing plans on how they will get out of the blockages, the UK lockdown is expected to be extended next week.
On a weekly basis, the British currency was on the verge of a gain of around 1%, helped by a further decline in the volatility of the currency market.