By Saqib Iqbal Ahmed
NEWYORKNov.21 – The dollar rose against most major currencies on Monday, recovering from its recent losses as new restrictions by the COVID-19 in China fueled concerns about the global economic outlook and caused traders to shy away from riskier currencies.
* The Chinese capital warned on Monday that it was facing its toughest test in the coronavirus pandemic. COVID-19, closure of commercial activities and schools in the most affected neighborhoods and tightening of the rules for entering the city, while infections increase in Beijing and nationwide.
* The new cases have cast doubt on hopes the government will soon ease its harsh restrictions. This strengthened the dollar, which is considered a safe asset in times of stress.
* The dollar rose 1.2% against the yen to 142,085, marking its biggest daily gain since Oct. 14. The euro fell 0.86% to $1.0235.
* “Now all eyes are on China and its policy of COVID zero. Traders are worried about the possibility of China extending its restrictions, which could slow growth and threaten higher inflation,” Monex’s John Doyle said. United States of America. “The concern is felt across all asset classes.”
* The onshore yuan opened at 7.1451 units to the dollar and weakened to 7.1708, its lowest since Nov. 11.
* Investors frowned on riskier currencies and the Australian dollar considered a liquid indicator of risk appetite it plunged 1.1% to its lowest level in more than a week at $0.66.
* Analysts attribute some of the greenback’s strength to a rebound after the heavy sell-off in recent weeks, which sent the dollar index down as much as 4.7% in November. The currency continues to rack up a 12% gain on the year.
