The new cases have cast doubt on hopes that the government can soon ease its tough restrictions. This has boosted the dollar, which is seen as a safe asset in times of stress.
The dollar rose 1.2% against the yen, to 142,085 units, which is its biggest daily advance since October 14. The euro fell 0.86% to $1.0235.
“All eyes are on China today and its zero-Covid policy. Traders are worried about the possibility of China expanding its restrictions, which could slow growth and threaten higher inflation,” said John Doyle of Monex USA. “The concern is felt across all asset classes.”
The “onshore” yuan opened at 7.1451 units per dollar and weakened to 7.1708, its lowest since November 11.
Investors frowned upon riskier currencies, and the Australian dollar – seen as a liquid indicator of risk appetite – plunged 1.1% to its lowest level in more than a week at $0.66.
Analysts attribute part of the greenback’s strength to a rebound after strong selling in recent weeks, which caused the dollar index to fall as much as 4.7% in November. The currency continues to accumulate a rise of 12% in the year.
Source: Ambito
I am a 24-year-old writer and journalist who has been working in the news industry for the past two years. I write primarily about market news, so if you’re looking for insights into what’s going on in the stock market or economic indicators, you’ve come to the right place. I also dabble in writing articles on lifestyle trends and pop culture news.
