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

Dollar Up, Risk Aversion Increases Alongside Concerns Over Economic Recovery

ForexJul 09, 2021 12:04AM 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 Friday morning in Asia, as concerns over the global economic recovery from COVID-19 continue to mount. Safe-haven currencies such as the Japanese yen and Swiss franc also gained, while riskier currencies such as the Australian and New Zealand dollars remained near multi-month lows.

The U.S. Dollar Index that tracks the greenback against a basket of other currencies inched up 0.05% to 92.453 by 11:47 PM ET (3:47 AM GMT). However, the U.S. currency dropped from a three-month high.

The USD/JPY pair edged up 0.15% to 109.95, with the yen holding onto gains from the previous session's 0.8% rally. However, Japan has declared a fresh state of emergency in Tokyo, three weeks before the Olympic Games are due to open in the city, as COVID-19 case numbers continue to rise.

The AUD/USD pair edged down 0.11% to 0.7420 with the Australian dollar continuing its losses after dropping 0.7% and hitting its weakest since mid-December 2021 on Thursday. The current lockdown in Sydney could be extended as the city struggles to contain its latest outbreak.

Across the Tasman Sea, the NZD/USD pair edged down 0.19% to 0.6940.

The USD/CNY pair inched down 0.09% to 6.4840. Chinese data, released earlier in the day, said the consumer price index (CPI) grew a smaller-than-expected 1.1% year-on-year in June, while contracting a bigger-than-expected 0.4% month-on-month. Meanwhile, the producer price index (PPI) grew 8.8% year-on-year.

The GBP/USD pair inched down 0.07% to 1.3775.

The Swiss franc held on to its gains from the previous session, when it soared more than 1%, on Friday.

Bonds rallied while global stocks plunged as concerns about the outbreaks involving the Delta variant of COVID-19 derailing economic recovery mounted. The benchmark U.S. Treasury yield fell to a nearly five-month low of 1.25% during the previous session, from the 1.5440%-high hit two weeks ago.

This in turn has put pressure on the greenback.

"There is certainly a wind of change in markets,” as concerns about inflation now shift to concerns about growth, National Australia Bank (OTC:NABZY) strategist Rodrigo Catril said in a note.

"There has not been a single catalyst triggering a turn in sentiment, instead it seems that an accumulation of events," including the rapid spread of the Delta variant and fears that central banks could begin asset tapering earlier than expected and delay the economic recovery from COVID-19, the note added.

Data released on Thursday also said 373,000 initial jobless claims were filed in the U.S. over the past week. The higher-than-expected number was another indication that the labor market’s recovery from COVID-19 continues to be uneven.

Dollar Up, Risk Aversion Increases Alongside Concerns Over Economic Recovery
 

Related Articles

Pound falls as UK inflation hits 40-year high
Pound falls as UK inflation hits 40-year high By Reuters - May 18, 2022 2

By Lucy Raitano LONDON (Reuters) -Britain's pound fell against the dollar on Wednesday, pulling away from almost two-week highs after data showing British inflation rising to a...

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
Continue with Google
or
Sign up with Email