The greenback continued its recent winning streak and rallied across the board on Wednesday

due to risk-off trading on continued fear of global economic impact caused by the worldwide spread of the coronavirus pandemic. The dollar index gained to its highest level since April 2017 whilst cable tumbled to a 35-year bottom. 

Versus the Japanese yen, although dollar retreated from 107.71 in Australia to session lows at 106.76 at European open on weakness in U.S. Treasury yields and stock futures, price found renewed buying and gained to 107.60. The pair later rallied to a 2-week high at 108.65 in New York on rising U.S. yields before weakening to 107.75 due to selloff in U.S. equities.

Although the single currency gained from 1.0986 in Asian morning to 1.1044, the price dropped to 1.0956 in European morning before rebounding to 1.1017. However, renewed selling interest emerged and the pair tumbled in tandem with sterling to a 3-week low at 1.0803 in New York on usd's broad-based strength before staging a strong recovery to 1.0918 near New York closing.

Reuters reported European Central Bank President Christine Lagarde told Europe's heads of government that lockdowns being imposed to fight the coronavirus epidemic could easily cause the EU's economy to shrink by 5%, the Frankfurter Allgemeine reported on Wednesday. The newspaper cited high-ranking EU diplomats who had said that her estimates of the impact of the lockdown measures ranged between 2% and 10% of total growth. The core calculation was based on the assumption that each month of lockdown would reduce growth by 2.1%.