• Dollar shifts up a gear as virus looms over England's 'Freedom Day'

    19 Jul 2021 | Economic News
  



Dollar shifts up a gear as virus looms over England's 'Freedom Day'



The safety of dollars and yen was sought on Monday, keeping the greenback near its strongest in months, as the spread of the delta coronavirus variant shook investors’ confidence in growth and left many nervous about England’s reopening.


The risk sensitive Aussie came under the most pressure among major currencies in the Asia session, dropping to a seven-month low of $0.7373 and sliding for a fifth day in a row on the yen to find its lowest in five months.


The yen was last up 0.1% at 109.25 per dollar and close to its strongest since April at 129.78 per euro. The euro sat at $1.1805, near last week’s three-month low of $1.1772.


The dollar rose to stand at its strongest this year on the Thai baht, the Singapore dollar and the Malaysian ringgit as stocks fell and bonds rallied with the jittery mood on what has been dubbed “Freedom Day” in England.


Daily infections have been surging from the United States and Europe to Asia and the global seven-day average of new cases each day is over half a million for the first time since May.


The dollar index firmed marginally to 92.717, leaving it pretty close to last week’s three-month high of 92.832. The Canadian dollar fell to its lowest since April, and through its 200-day moving average, with a drop in oil prices.


Traders are now holding their breath as Monday marks the end of most social curbs in England and a shift from suppression to trusting vaccination to prevent serious illness.


Sterling was perched at $1.3754, its lowest in more than a week, as the sun rose in London with epidemiologists sceptical and the prime minister, finance minister and health minister themselves isolating as cases spread.


Boris Johnson’s government is betting fully vaccinated people are less likely to get seriously ill with COVID-19.


Reference: Reuters


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