Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Dollar Down, Yen Near Seven-Week High as Omicron Continues to Spread

ForexDec 01, 2021 11:11PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters.

By Gina Lee – The dollar was down on Thursday morning in Asia while the yen, a fellow safe-haven asset, remained near a seven-week high. The South African rand and other riskier currencies were also impacted by concerns over the new omicron COVID-19 variant and its rapid global spread.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched down 0.06% to 95.968 by 11:03 PM ET (4:03 AM GMT). The index consolidated in the middle of its range over the past two weeks, after rising as high as 96.938 for the first time since July 2020 during that period.

The USD/JPY pair was up 0.28% to 113.07.

The AUD/USD pair edged up 0.15% to 0.7115 and the NZD/USD pair was up 0.23% to 0.6823.

The USD/CNY pair inched up 0.03% to 6.3693 and the GBP/USD pair edged up 0.16% to 1.3298.

The dollar remained closed to Tuesday's low of 112.535 against the yen, a level not seen since Oct. 11. It was off 0.12% against the South African rand after a more-than-1% surge during the previous session.

Markets were rattled by the news that omicron could be more contagious than previous variants, which indicated a return to travel banks and lockdowns that could impact the economic recovery. The U.S. reported its first case of the variant on Wednesday, as Australia, the U.K., Canada, and Japan, also reported cases despite tightened borders.

Meanwhile, the number of omicron cases in South Africa, where the variant was discovered four weeks ago, doubled from Tuesday to Wednesday.

Despite the uncertainty surrounding omicron and its impact, U.S. Federal Reserve Chairman Jerome Powell reiterated his stance that the Fed will consider speeding up asset tapering when it meets from Dec. 14 to 15. This could also mean a quicker-than-expected interest rate hike.

"If nothing else, Powell's repeat testimony tells you he is not in the least unhappy about how markets have interpreted what he said earlier," National Australia Bank (OTC:NABZY) head of FX strategy Ray Attrill said in a note.

"The truth is we are less than a week into the two-to-three-week timeframe that anyone worth listening to, epidemiologists, not market analysts, say is necessary before an informed judgment can be made with respect both to the seriousness of this COVID-19 variant and the efficacy of existing vaccines,” the note added.

Dollar Down, Yen Near Seven-Week High as Omicron Continues to Spread

Related Articles

Dollar Lower as Longs Head For The Exit
Dollar Lower as Longs Head For The Exit By - Jan 14, 2022 4

By Peter Nurse - The U.S. dollar weakened in early European trade Friday, heading for its worst week in more than a year as traders now consider Federal Reserve...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
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.
Continue with Google
Sign up with Email