Safe haven currencies like the U.S. dollar and the yen were in demand on Thursday on renewed fears of a global banking crisis, after contagion from the implosion of U.S.-based Silicon Valley Bank spread across the Atlantic to Swiss bank Credit Suisse.
That sent them flocking to the greenback and Japanese yen, which are considered safer bets in times of turmoil, keeping the two currencies buoyed on Thursday.
"We've got some fresh turmoil in the European banking sector and things are still very fluid at the moment," said Carol Kong, a currency strategist at Commonwealth Bank of Australia . Against a basket of currencies, the U.S. dollar index was last 0.07% lower at 104.58, after jumping nearly 1% in the previous session.to recover from a string of scandals that have undermined the confidence of investors and clients, was the latest casualty to be caught up in a crisis of confidence after the collapse of SVB last week.
The European Central Bank meets later on Thursday and is due to announce its interest rate decision following the meeting.
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