On Wednesday, the dollar declined against some of its major peers after reducing concerns about the economic impact of the new Omicron variant. For example, it helped support riskier currencies, such as the Australian dollar, to get three sessions in a row of gains.
The dollar index fell 0.5% to 95.855. The index remained close to the 15-month high hit in November. Senior analyst at payments company Caxton, Michael Brown, said that concerns about the new Omicron strain seem to be fading slightly. It happened after the data appeared, pointing to the fact that infections caused by the new strain are milder than previously assumed.
This week, investors’ interest in riskier assets gained profits. This was after news that people infected with the new Omicron variant showed mild symptoms.
On Tuesday, Anthony Fauci, U.S. infectious disease expert, said that initial evidence suggests that the new Omicron variant is highly transmissible. However, it is less severe.
Overview
Currencies related to commodities, including the Aussie dollar, appeared to be the primary receivers of the improved risk sentiment.
The Aussie dollar was 0.9% higher at $0.7178, ranked its highest level in one week.
Caxton’s Brown said that the recent Chinese move to boost its slowing economy turned out to support the Australian currency.
As predicted, the Canadian dollar remained unchanged after Canada’s central bank held its interest rate at 0.26%. Furthermore, it kept its suggestion that a first hike might come at the beginning of 2022.
The Norwegian crown increased about 1.9% against the U.S. dollar.
The pound was 0.06% lower after Minister Boris Johnson released stricter restrictions in England this week. He asked people to wear masks in public places and to work from home. Moreover, he is urging people to get vaccinated to slow the spread of the virus.
On Wednesday, Bitcoin was flat at $50,567.88.
Interested in Forex Trading? Read WiBestBroker’s comprehensive Foxane Review.
COMMENTS