Why did the price of Dollar fell against the euro on March 9?

Expert Solution

From the january 2020 itself price of the Dollar slightly fell against Euro. On March 9 2020 price of the dollar was lowest against euro.

Reason behind the fall in price of dollar against euro from january to march 9;

1) Rest of the world economically improved during this period : The phase one trade agreement with China and a new trade treaty with Canada and Mexico set up other parts of the world to do better economically than united states.

2) Election year: 2020 is the election year so it could weaken more if there is uncertainty, such as ascension of a candidate that has policies that are unfriendly to business.Expert analysts says that President Donald Trump wanted a weaker dollar and he certainly wants it coming into the election, because a weaker dollar causes exports to be stronger.

All these are the major reason behind the fell in the price of dollar against euro.

After march 9, the price of dollar increased because people thought that dollar is safe while comparing other currency in the period of corona virus. Due to the corona virus spreading people want to store currency for safeguard there lives. So they opted dollar is the best currency in this situation. This decision of the people raised the price of dollar.

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