Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Dollar Up, but Near One-Week Low Over Receding COVID-19 Fears

ForexAug 24, 2021 11:17PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters.

By Gina Lee

Investing.com – The dollar was up on Wednesday morning in Asia, trading near a one-week low. Investors are turning away from the safe-haven asset as COVID-19 concerns that clouded the economic recovery outlook eased.

The U.S. Dollar Index tracking the greenback against a basket of other currencies edged up 0.16% to 93.045 by 11:12 PM ET (3:12 AM GMT). It fell to 92.804 on Tuesday, the first time it has done so since Aug. 17.

The USD/JPY pair edged up 0.17% to 109.81.

The AUD/USD pair edged down 0.20% to 0.7243 and the NZD/USD pair edged down 0.12% to 0.6940.

The USD/CNY pair edged up 0.12% to 6.4787 while the GBP/USD pair inched down 0.07% to 1.3717.

The U.S. FDA’s full approval of the Pfizer Inc. (NYSE:PFE)/BioNTech SE (F:22UAy) COVID-19 vaccine earlier in the week has raised hopes that inoculations rates will rise and has increased the global risk appetite. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and the chief medical advisor to the President, even predicted that the U.S. could have COVID-19 under control by early 2022 if vaccination rates rise.

The U.S. currency has rallied in recent weeks, even hitting a nine-and-a-half month high of 93.734 during the previous week. Concerns about the global spread of COVID-19, and the Delta variant particularly, alongside signs that the U.S. Federal Reserve could start asset tapering later in 2021, contributed to this rally.

However, some investors are betting that the continuing spread of COVID-19 will diminish the chances that the Fed will announce a timeline for both asset tapering and interest rate hikes at its’ annual Jackon Hole symposium, taking place from Aug. 26 to 28.

"The tide of optimism seems to have set in," lifting commodity currencies at the dollar's expense, National Australia Bank (OTC:NABZY) analyst Tapas Strickland said in a note.

Jackson Hole "looms as the next key test," but "given the uncertainty it is likely the Fed needs to see another one or two stellar payroll prints, though an asset taper announcement in 2021 is still likely," the note added.

Dollar Up, but Near One-Week Low Over Receding COVID-19 Fears
 

Related Articles

Dollar pares losses as Powell signals bond taper
Dollar pares losses as Powell signals bond taper By Reuters - Oct 22, 2021 4

By Karen Brettell NEW YORK (Reuters) - The dollar pared losses on Friday after Federal Reserve Chairman Jerome Powell said the U.S. central bank should begin reducing its asset...

GBP Slides Following Brexit Trade Deal Worries
GBP Slides Following Brexit Trade Deal Worries By Investing.com - Oct 22, 2021

By Sam Boughedda Investing.com — The pound sterling weakened late in Friday's session after Bloomberg reported that the European Union could terminate the post-Brexit trade deal if...

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 Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
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?
 
Post
 
Replace the attached chart with a new chart ?
1000
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 Investing.com'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
or
Sign up with Email