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

U.S. dollar advances to three-month high in safety move

ForexJul 20, 2021 03:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: A U.S. hundred dollar bill and Japanese 10,000 yen notes are seen in this photo illustration in Tokyo, February 28, 2013. REUTERS/Shohei Miyano/File Photo

By Gertrude Chavez-Dreyfuss

NEW YORK (Reuters) -The U.S. dollar climbed to a three-month peak on Tuesday in a flight-to-safety bid, as investors remained anxious about a fast-spreading coronavirus variant that could throttle global growth.

Commodity currencies tied to risk appetite such as the Australian and New Zealand dollars struggled, with investors opting for safety or staying on the sidelines amid renewed fears about the highly contagious Delta variant, now the dominant coronavirus strain worldwide.

U.S. infections have surged, especially in areas where vaccinations have lagged.

The dollar rose as yield differentials have moved against it. Benchmark 10-year U.S. Treasury yields dipped to a five-month low below 1.20% on Monday on renewed skepticism about a strong economic rebound from the pandemic. [US/]

"Shifts in relative growth rate expectations are weakening capital flows out of the U.S. and heightening the appeal of dollar-denominated investments," said Karl Schamotta, chief market strategist at Cambridge Global Payments (NYSE:GPN) in Toronto.

"At the same time, an unwinding in speculative positions is forcing a short squeeze in currency markets - driving the dollar upward," he added. 

In afternoon trading, the dollar index, a measure of its value against six major currencies, rose 0.1% to 92.961, after hitting a three-month high of 93.161 earlier in the session.

Data showing U.S. housing starts rose 6.3% to a seasonally adjusted annual rate of 1.643 million units last month had little reaction from the FX market.

"I believe the safe-haven strengthening in the dollar is merited, considering that global progress has been anemic to what it appeared like in Q1 so now all valuations and high expectations for growth are being rightly questioned," said Juan Perez, FX strategist and trader at Tempus Inc in Washington.

In other currencies, the euro weakened 0.2% to $1.1780, after dipping to $1.1755, the lowest since early April ahead of a European Central Bank policy decision on Thursday.

The British pound was also among the biggest losers, with the currency declining 0.4% to $1.3607, as Boris Johnson's "freedom day" - ending more than a year of COVID-19 lockdown restrictions in England - was marred by surging infections.

The Australian dollar dropped to its lowest since late November and was last down 0.2% at US$0.7331.

The Aussie's losses were broad-based as minutes of the Reserve Bank of Australia's policy meeting this month were seen by some economists as a sign that the central bank may reverse a decision to taper stimulus.

In cryptocurrencies, bitcoin sank as low as $29,296.39, a level not seen since June 22. It was last down 3.4% at $29,779. Rival ether fell 1.5% to $1,789.32.

========================================================

Currency bid prices at 2:51PM (1851 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Dollar index 92.9550 92.8770 +0.10% 3.305% +93.1720 +92.7990

Euro/Dollar $1.1783 $1.1800 -0.14% -3.56% +$1.1803 +$1.1755

Dollar/Yen 109.8250 109.4550 +0.34% +6.29% +109.9500 +109.3350

Euro/Yen 129.40 129.15 +0.19% +1.95% +129.4600 +128.6100

Dollar/Swiss 0.9211 0.9181 +0.34% +4.12% +0.9232 +0.9174

Sterling/Dollar $1.3627 $1.3673 -0.34% -0.26% +$1.3689 +$1.3573

Dollar/Canadian 1.2695 1.2746 -0.40% -0.31% +1.2787 +1.2695

Aussie/Dollar $0.7331 $0.7348 -0.24% -4.71% +$0.7357 +$0.7300

Euro/Swiss 1.0853 1.0831 +0.20% +0.43% +1.0857 +1.0822

Euro/Sterling 0.8645 0.8626 +0.22% -3.27% +0.8669 +0.8621

NZ $0.6922 $0.6944 -0.32% -3.61% +$0.6954 +$0.6882

Dollar/Dollar

Dollar/Norway 9.0055 8.9560 +0.56% +4.88% +9.1020 +8.9545

Euro/Norway 10.6140 10.5575 +0.54% +1.40% +10.7038 +10.5326

Dollar/Sweden 8.7038 8.6857 +0.08% +6.19% +8.7336 +8.6761

Euro/Sweden 10.2553 10.2475 +0.08% +1.78% +10.2692 +10.2380

U.S. dollar advances to three-month high in safety move
 

Related Articles

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.
Comments (4)
Steve Cohen
Steve Cohen Jul 20, 2021 4:37PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The sentance ‘U.S. infections have surged, especially in areas where vaccinations have lagged’ should have read - its a mystery why the highest vaccinated countries have the most cases? ANSWER = THE VACCINATED ARE THE MAJORITY CATCHING THIS THING!
Vlad Lozovskiy
Vlad Lozovskiy Jul 20, 2021 11:20AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
So far we see only dollar falling and falling.
Helen Miren
Helen Miren Jul 20, 2021 12:08AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Hello Zen cool. I'm Helen
zen cool
zen cool Jul 20, 2021 12:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
whatsoever it is what it is, 1 year and 8 months dragging, go to Mars if whosoever feels scare
Helen Miren
Helen Miren Jul 20, 2021 12:06AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
hello
 
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