Connect with us

Hi, what are you looking for?

Finance

Global foreign exchange market trading fell to less than $2 trillion in March

Foreign Exchange Market

Average foreign exchange market trading volumes around the world have declined last March, by 10%, year on year, to $1.98 trillion, CLS group said.

The platform referred to the decline in average foreign exchange trading volumes to the price fluctuations that resulted from the outbreak of the new Coronavirus pandemic during the past year.

CLS group, a main platform for settling deals in the foreign exchange market, indicated a sharp decline in the volume of transactions in the spot markets of currencies in particular, during the past month from the levels of 2020.

Foreign exchange market

According to Reuters, the average daily trading volumes, during the first three months of this year, reached a record level of $1.95 trillion.

Last December, CLS data showed that the daily average of global foreign exchange trading volumes in November increased by 11% compared to last October.

The result of the US presidential elections and the Pfizer-Bionic vaccine led to a rapid increase in spot transaction activity.

Average daily currency volumes were $1.78 trillion in November, up from $1.6 trillion a year earlier, according to Reuters.

The increase in trading led to a significant increase in spot transactions, with volumes increasing by 23% from 2019 levels, and currency swaps increasing by 5.7% on an annual basis.

On the other hand, the dollar fell to its lowest level in about seven weeks during the Asian session, while the euro rose with investor optimism about the pace of vaccinations in Europe, and Treasury yields remained below the high levels recorded in March.

Since April, the dollar has retreated in conjunction with the decline in US Treasury bond yields from a 14-month high, which touched them last March.

The decline was in contrast to what happened in the first quarter, when the dollar rose with the rise in US Treasury bond yields, which means higher yields for the US currency.

On Tuesday, transactions showed, the dollar index fell by 0.1%, to reach 90.952, after recording the highest level during the Asian session at 90.877.

The euro rose by 0.3%, to $1.2065, achieving the highest level in seven weeks after surpassing a key level of $1.20 in the previous session.

Business

In light of the upcoming international fair, Dubai Expo 2020, being hosted from October 2021 until March 2022, the rights of migrant workers in...

Business

The German startup Lilium has revealed its latest electric vehicles that can take off and land vertically (eVTOL). The aircraft, designed with seven seats,...

special

The United Arab Emirates (UAE) has failed to comply with the European standards for combating money laundering, European investigations revealed, four months after a...

World

The group of seven rich nations (G7) is set to announce a new global infrastructure project, in response to China’s Belt and Road Initiative,...