Global rate cuts, monetary stimulus, fiscal packages fail to calm markets

Singapore

WHILE policymakers are pulling out all the stops from rate cuts and asset purchases to the unprecedented shutting down of borders to save their epidemic-hit economies, financial markets remain freaked out by Covid-19.

Such "scary" market behaviour in full swing, say pundits, underscores expectations of a prolonged pandemic. "Investors are selling whatever they can to raise cash. This also explains why the US dollar is soaring to record highs. Investors are clearly being forced to build cash reserves to survive a prolonged period of the current pandemic," remarked FXTM chief market strategist Hussein Sayed.