FOREX-Dollar Company As Delta Virus Threat Looms Over “Freedom Day”
Band Tom Westbrook
SINGAPORE, July 19 (Reuters) – The dollar was near its highest levels for months on Monday, as the spread of the Delta coronavirus variant made investors nervous about the global recovery and sent money to safety.
The risk-sensitive Australian dollar fell to its lowest level against the greenback since December at the start of the Asian session and hit a five-month low against the safe haven yen AUDJPY =. The dollar has also appreciated significantly against Asian currencies. EMRG / FRX
Daily infections increased from the United States and Europe to Asia and the global seven-day average of new cases every day exceeds half a million for the first time since May. Traders are holding their breath as England lifts most social barriers.
The Aussie lost 0 for the last time.2% to $ 0.7381AUD = D3 and the New Zealand dollar NZD = D3 also fell from 0.2% to $ 0.6986. The yen, which appreciated widely, appreciated 0.2% to 109.90 per dollar JPY = EBS and up by about the same margin to 129.69 per euro EURJPY =.
“The market is really trading on the uncertainty in the air around COVID,” Rodrigo Catril, National Australia Bank senior currency strategist, said during the bank’s morning podcast.
“This is the dominant factor,” he said, although the addition of a surprise drop in US consumer confidence also unsettled investors.
The US dollar index = USD held at 92.729, not far from last week’s high of 92.832. The euro EUR = EBS recovered $ 1,1801, just off last week’s three-month low of $ 1.1772.
The week’s data schedule is pretty bare until Friday, when the Global Purchasing Managers Index numbers are released, with policy and virus response expected pending as lockdowns tighten and s ‘are expanding into Asia.
There is an external chance that China’s benchmark lending prime rate will be lowered on Tuesday and the European Central Bank, which is meeting on Thursday, signaled an adjustment to its guidance.
Sterling GBP =, meanwhile, wobbled to $ 1.3755, its lowest in more than a week, as hopes straddle the so-called “Freedom Day” with England bsetting his rush to vaccinate the population will mean people are less likely to become seriously ill with COVID-19.
The relaxed rules have already been met with a mixture of nerves and excitement from London clubbers in the wee hours, but the day also starts with skeptical epidemiologists and the Prime Minister, Minister of Finance and Minister of Health themselves isolating themselves as cases spread.
“The Netherlands has eased all restrictions and seen cases drop from 500 to 10,000 a day in two weeks, and the government has had to back down and is now eagerly awaiting what happens to the hospitalizations,” ANZ Bank analysts said.
“The UK’s ‘freedom day’ today has some concerns it may have a similar experience.”
Cryptocurrencies were flat in morning trading, with bitcoin holding near strong support at $ 31,590.
Elsewhere, the dollar continued to rise against Asian emerging market currencies, sending the Thai baht dependent on tourism THB = TH to a new 15-month low and the Malaysian ringgit MYR = MY at its lowest for almost a year.
Price of currency offers at 0144 GMT
US Close previous session
Percentage change for the current year
EUR = EBS
Dollar / Yen
JPY = EBS
Euro / yen
EURJPY = EBS
Dollar / Switzerland
CHF = EBS
Pound sterling / dollar
GBP = D3
CAD = D3
Australia / Dollar
AUD = D3
New Zealand dollar / Dollar
NZD = D3
All spots FX =
Tokyo spots AFX =
Points of Europe EFF =
Volatilities VOLFX =
BOJ Tokyo Forex Market Information TKYFX
Global exchange rates https://tmsnrt.rs/2RBWI5E
(Report by Tom Westbrook edited by Shri Navaratnam)
(([email protected]; +65 6973 8284;))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.