Dollar against a safe haven as dangerous sentiment rises in the news of Omicron Writer Reuters

By Saqib Iqbal Ahmed

NEW YORK (Reuters) – The dollar has risen sharply against currencies such as the yen and the Swiss franc following the strengthening of the Omicron COVID-19, while units like the Australian dollar weakened in recent weeks over growth crisis have also improved. .

US Treasury yields soared and stocks gained after initial reports showed Omicron’s patients had only a weak spot, with some of the stocks retreating on Friday.

Although Omicron has spread to nearly a third of US states since Sunday, Drs. Anthony Fauci, US chief of infectious diseases, told CNN that “so far it does not appear to be a threat”.

“The absence of tensions near Omicron over the weekend seems to be helping the market stabilize today after a major downturn last weekend,” Marc Chandler, chief marketing officer at Bannockburn Global Forex, said in a statement.

The dollar rose 0.5% against the Japanese yen and 0.9% against the Swiss franc. The yen and the franc often lure investors to seek protection in the event of a financial or national crisis.

The dollar depreciated by 0.3% against the Japanese currency on Friday.

Friday’s greenback loss also followed a report on the activity described below, although the data did not dampen market expectations that the Federal Reserve will accelerate its recovery process and raise interest rates, starting next year.

The US Dollar Currency Index, which measures the greenback against six opponents, was 0.1% higher at 96.309, not far from the 16th month of 96.938 which affected the end of last month.

Advertisers have been increasingly on the dollar in recent weeks, with long bets on the greenback rising to the highest level since June 2019, a US CFTC report showed on Friday.

Meanwhile, the Australian dollar has risen to 0.64%, starting from a 13-month decline last week.

The Russian ruble plummeted in trade late Monday after US President Joe Biden warned his Russian counterpart Vladimir Putin of the financial crisis if he invaded Ukraine before summoning the two men on Tuesday.

The Canadian dollar strengthened against its US counterpart on Monday as oil prices soared and interest turned to Bank of Canada interest rates this week, the currency resumed sharply after two months.

Elsewhere, cryptocurrencies lost significant losses from the wild weekend that at one time broke bitcoin by more than 20%. dropped by 0.6% to $ 49,166.35 on Monday.