The dollar rises against currencies as the demand for safe havens increases

12:10 PM

Tuesday 20 July 2021

Cairo – Masrawy:

Safe-haven currencies such as the dollar and yen hit multi-month highs against riskier currencies the Australian dollar and the British pound on Tuesday, as fears grew that the highly-spreading delta strain of the coronavirus could upend the global economic recovery.

Cryptocurrencies also tumbled, with Bitcoin dropping below $30,000 for the first time in nearly a month.

The yen was trading at 80.09 to the Australian dollar, near the five-month high of 80.05 it touched on Monday, and the currency recorded 149.48 to the British pound, close to its highest level in nearly three months at 149.35 recorded overnight.

The dollar touched its highest level in nearly 8 months at $0.7317 for the Australian dollar, before trading at $0.7319, and it was trading at 1.36625 dollars for the British pound, after hitting its highest level since early February at $1.3655 in the previous session.

The Australian dollar accelerated its decline as some economists saw the minutes of this week’s RBA policy meeting as a sign that the central bank may reverse its decision to cut stimulus.

The yen outperformed the dollar, rising to 109.07 per US dollar on Monday for the first time since late May, supported by a rapid drop in benchmark US Treasury yields to a low of 1.1740 percent for the first time since mid-February. Today, Tuesday, the dollar reached 109.46 yen.

The fast-spreading delta mutant of the Corona virus has now become the dominant strain around the world, and is accompanied by a rise in infections in the United States, especially in areas where vaccination has failed.

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The euro fell 0.1% to $1.17885, after falling last night to its lowest level since early April at $1.1764.

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