The U.S. dollar rose on August 25 to trade above a one-week low versus other main currencies amid concerns the highly contagious Delta coronavirus variant could derail a global economic recovery.
Risk appetite in global markets improved this week thanks to regulators. The Food and Drug Administration (FDA) granted full approval to the Covid-19 vaccine developed by Pfizer and BioNTech.
The country’s top infectious disease expert Dr. Anthony Fauci stated that the country could get the pandemic under control by early next year.
Nevertheless, the dollar index, which tracks the greenback against six rivals, edged up 0.1% to 93.019 on Wednesday. One day earlier, the index fell 92.804 for the first time since August 17.
The U.S. currency rallied until the start of the week, with the dollar index hitting a 9-½ month high of 93.734 several days ago.
Dollar and various factors
Fauci’s comment about the Covid-19 came one day after the Pfizer vaccine received full approval from FDA. It is important to work with people who are against vaccines. People across the country should realize the importance of Covid-19 vaccines.
On August 23, more local localities, as well as organizations, said they will require proof of vaccination following the announcement that Pfizer-BioNTech’s vaccine obtained full federal approval.
Officials are trying to deal with the highly contagious Delta coronavirus vaccine. The U.S. has the highest number of Covid-19 cases, so it is not surprising that authorities are willing to impose such requirements. As of August 24, the country recorded nearly 38 million cases.
The world’s largest economy continues to help developing countries, as it is not an easy task to obtain vaccines. The U.S. donated a half-million doses of Moderna’s vaccine to Palestinians in the West Bank as well as Gaza.
Apart from the Delta coronavirus variant, investors are closely monitoring the Federal Reserve’s upcoming annual conference. Unsurprisingly, expectations declined that the central bank will indicate a timeline for the tapering of its massive bond-buying program.
The U.S. dollar rose 0.2% to 109.89 yen, another safe-haven currency.
The U.S. currency advanced 0.15% against the euro to $1.1739, remaining close to the one-week low of $1.17655.
The British pound fell 0.1% to $1.3716 after resign as high as $1.37475 on Tuesday, its strongest since November 19. The Australian dollar declined 0.8% to $0.7251 after touching a one-week high of $0.7271 in the previous session.