Commodity currencies slipped against their safe-haven rivals such as the dollar and yen on Monday as a record output cut agreed by OPEC and other oil producing nations failed to offset broader concerns about slumping global demand.
The greenback drifted higher against its Australian and New Zealand counterparts, widely seen as barometers for market risk, in a sign investors remain concerned about the consumption outlook for commodities.
Financial markets remain on edge over the spread of the novel coronavirus as severe restrictions on personal movement drag the global economy into a deep recession.
“The initial reaction suggests that the decline in oil demand is well ahead of the output cuts that were agreed,” said Yukio Ishizuki, FX strategist at Daiwa Securities in Tokyo.
