Connect with us

Hi, what are you looking for?

Forex

Dollar Up, Risk Aversion Increases Alongside Concerns Over Economic Recovery By Investing.com

Dollar Up, But Gentle Pressure Remains Ahead of “Super Thursday”


© Reuters.

By Gina Lee

Investing.com – The dollar was up on Friday morning in Asia, as concerns over the global economic recovery from COVID-19 continue to mount. Safe-haven currencies such as the Japanese yen and Swiss franc also gained, while riskier currencies such as the Australian and New Zealand dollars remained near multi-month lows.

The that tracks the greenback against a basket of other currencies inched up 0.05% to 92.453 by 11:47 PM ET (3:47 AM GMT). However, the U.S. currency dropped from a three-month high.

The pair edged up 0.15% to 109.95, with the yen holding onto gains from the previous session’s 0.8% rally. However, Japan has declared a fresh state of emergency in Tokyo, three weeks before the Olympic Games are due to open in the city, as COVID-19 case numbers continue to rise.

The pair edged down 0.11% to 0.7420 with the Australian dollar continuing its losses after dropping 0.7% and hitting its weakest since mid-December 2021 on Thursday. The current lockdown in Sydney could be extended as the city struggles to contain its latest outbreak.

Across the Tasman Sea, the pair edged down 0.19% to 0.6940.

The pair inched down 0.09% to 6.4840. , released earlier in the day, said the consumer price index (CPI) grew a smaller-than-expected 1.1% in June, while contracting a bigger-than-expected 0.4% . Meanwhile, the grew 8.8% year-on-year.

The pair inched down 0.07% to 1.3775.

The Swiss franc held on to its gains from the previous session, when it soared more than 1%, on Friday.

Bonds rallied while global stocks plunged as concerns about the outbreaks involving the Delta variant of COVID-19 derailing economic recovery mounted. The benchmark U.S. Treasury yield fell to a nearly five-month low of 1.25% during the previous session, from the 1.5440%-high hit two weeks ago.

This in turn has put pressure on the greenback.

“There is certainly a wind of change in markets,” as concerns about inflation now shift to concerns about growth, National Australia Bank (OTC:) strategist Rodrigo Catril said in a note.

“There has not been a single catalyst triggering a turn in sentiment, instead it seems that an accumulation of events,” including the rapid spread of the Delta variant and fears that central banks could begin asset tapering earlier than expected and delay the economic recovery from COVID-19, the note added.

Data released on Thursday also said 373,000 were filed in the U.S. over the past week. The higher-than-expected number was another indication that the labor market’s recovery from COVID-19 continues to be uneven.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Click to comment

Leave a Reply

Your email address will not be published.

You May Also Like

Technology

Cybercriminals Adopt the Blockchain to Broadcast confidential Messages A group of analysts from SophosLabs represents that programmers working the crypto-jacking malware, Glupteba, have been...

Technology

PUBG unban in India soon as PUBG Corp. Will The Government Of India Unban PUBG? PUBG Mobile was Ban in India, PUBG organization has...

Technology

A standard method to execute Bitcoin could be powerless against double-spending, the new examination has found. Blockchain sleuths at ZenGo, a wallet startup, have...

BlockChain News

HDD mining, also known as “storage mining”, is a process of obtaining cryptocurrency based on hard disk memory. Compared with traditional POW mining, hard...