What countries have been most affected by the Corona situation?

The forex has always the most volatile in times of crisis. From the ".com" crash of 1999 to the real estate market crash in 2009. General market uncertainty usually creates panic in international trading markets. Recent weeks have been no different, with the rapid spread of the new virus, a variety of global currencies have experienced significant levels of volatility in response to the health threat.

This is due to the fact that nations around the world have shut down, meaning that some already struggling economies will now face even higher levels of uncertainty as the strength of their economies begins to sink.

So which currencies have suffered the most recently, and is there any hope for a recovery in both the forex and the economy as a whole?

South Africa's rand

The rand is generally one of the most widely traded currencies in the world, especially the USD/ZAR. Many traders find it a good way to diversify their portfolios while gaining access to emerging markets. In recent years, the American economy has been booming and has experienced the longest bull market in its history. In addition to the fact that South Africa has been at the center of the economic and political turmoil, the dollar-rand pair has continued to weaken to unprecedented levels. Around 7 years ago, you could get 10 rand per dollar. As of 2020, that amount has almost doubled.

As the below chart illustrates, each candle represents a month. At the beginning of this year, before the virus situation began, the pair's price stood at 15.40, which was the ceiling or resistance rate for the last 7 years. However, as the virus worsened and both countries had to close their borders, South Africa's economy was hit the hardest, with a rate ranging from 15.40 to 18.99 in just a few months.

South Africa is more dependent on tourism and other more contact-based services. Calls to "stay at home" have caused many people to lose their jobs.

The eurodollar

The abandonment of emerging currencies in favour of larger currencies tells a different story. The eurodollar is the market's most traded currency. It has virtually continued its trajectory of the past few years. As a result, the euro has continued to strengthen against the dollar. During the first quarter, when the virus was affecting Europe more than the United States, we saw a slight decline in the dollar from a low of $1.06 to $1.15.

Since then, the United States has become by far the most affected country in the world, leading to a further decline in its currency, which now stands at $1.08. So although there has been some movement, the trend has continued in the trajectory that it had before the virus situation hit.