Dollar Climbs to Multi-Month Highs; Covid Prompts Risk Aversion

By Peter Nurse

Investing.com – The dollar traded at multi-month highs in Europe Tuesday, continuing to benefit from its safe haven status amid concerns rising Covid-19 will hinder the global economic recovery.

At 2:55 AM ET (0755 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.1% higher at 92.953, climbing to levels not seen since February.

EUR/USD fell 0.1% to 1.1780, after dipping overnight to the lowest since early April, USD/JPY rose 0.1% to 109.51, GBP/USD dropped 0.1% to 1.3660, after falling to the lowest level since early February in the previous session, while the risk-sensitive AUD/USD fell 0.3% to 0.7321, an almost-eight-month low.

The highly-contagious delta variant of the Covid-19 virus is now the dominant strain worldwide, and this has resulted in a jump in coronavirus cases across Asia, where vaccination programs are in their infancy, and also in parts of Europe and the United States,…

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