Dollar up, Omicrons news
After reassuring news on the Omicron COVID-19 variant, the dollar edged higher against safe-haven currencies such as the yen and Swiss franc. Meanwhile, currencies such as the Australian dollar, which had fallen in recent weeks due to growth concerns, also advanced.
Treasury yields in the United States rose. Moreover, stocks rose after preliminary findings revealed that Omicron patients had only mild symptoms. The news reversed some of Friday’s steep drop.
The lack of adverse developments surrounding Omicron over the weekend seems to be assisting markets in regaining their footing today following the dramatic moves at the end of last week.
The U.S. dollar rose 0.5 percent against the Japanese yen and 0.9 percent against the Swiss franc. When economical or geopolitical tensions rise, the yen and the franc typically attract investors seeking safety.
The U.S. Dollar Currency Index compares the greenback to six rival currencies. It was 0.1 percent higher at 96.309, not far from the 16-month high of 96.938 reached late last month.
In recent weeks, investors have grown more bullish on the dollar, with net long bets on the currency reaching their highest level since June 2019.
Meanwhile, the Australian dollar rose 0.64 percent after falling to a 13-month low the previous week.
On Monday, the Canadian dollar rose against the U.S. dollar as oil prices rose. Investors focused on the Bank of Canada’s interest rate decision this week, with the currency recovering from its lowest level in more than two months.
In other news, cryptocurrencies suffered significant losses due to a wild weekend that crushed bitcoin by more than 20% at one point. Bitcoin has dropped 0.6 percent to around $49,166.35.