Dollar dives to 20-week low

The US dollar slid to a 20-week low against the Japanese yen on Friday after Federal Reserve Chair Jerome Powell suggested the central bank could cut interest rates in the wake of the coronavirus.

Powell on Friday said the central bank will "act as appropriate" to support the economy in the face of risks posed by the coronavirus outbreak, though he said the economy remained in solid condition.

The Japanese yen was on track for its largest daily gain since May 2017 as investors moved into the safe-haven currency. It had strengthened to as high as 107.52 versus the dollar and was last trading up 1.51 per cent at 107.92. The dollar index was last down 0.324 per cent to 98.127, down about 1 per cent this week on rising expectations of a rate cut. A cut of at least 25 basis points at the Fed's March meeting was fully priced in on Friday, versus expectations of 57.6 per cent on Thursday.