Panic returned to Wall Street, where its main index, the Dow Jones, sank 6.9% to 25,128. The SP 500 dropped 5.89% to 3,002 points, and the Nasdaq plunged 5.27%. The USD and JPY were the safe-haven currencies of the forex session.
As will have been the case in the session of this Black Thursday, that not even Gold and Bitcoin served as a reserve of value. The spot gold ounce closed at US$ 1725, up from US$ 1,738 on Wednesday. For its part, the BTC is trading at around US$ 9,350, from US$ 9,900 at the beginning of the day.
The big winner of the session was the greenback, which trades at 1.1290 against the Euro, after having passed 1.14 on Wednesday, when the Fed announced that the interest rate remains unchanged at <0.25%.
Forex Market: FED left interest rate unchanged at <0.25%
Dollar Analysis in the Forex Market
The yen rose to a one-month high against the dollar, while the Swiss franc rose to a new three-month high.
The dollar index rose sharply in the session as investors sold off currencies associated with risk taking, such as the euro, pound and Australian dollar, according to Reuters news agency.
„Today, animal spirits are not so strong,“ said Marc Chandler, chief market strategist for Bannockburn Global Forex in New York. „A trade is spreading through the markets: taking gains in equities, hitting emerging markets, reducing earnings in these leading currencies and turning to the safety of debt markets.
The demand for safe-haven currencies increased after the Fed issued a gloomy outlook last Wednesday. After its two-day meeting, the Bitcoin Evolution said it plans years of extraordinary support for the U.S. economy. GDP is expected to fall to 6.5% in 2020, with an unemployment rate of 9.3%.