Dollar strengthening due to new wave of COVID in China
2022.12.29 00:17
Dollar strengthening due to new wave of COVID in China
Budrigannews.com – As initial optimism regarding China’s reopening waned, long-end U.S. Treasury yields surged overnight, leading to a steadying of the dollar on Thursday.
Countries like the United States, Japan, and India announced that they would require COVID tests for travelers coming from China following China’s removal of its quarantine rule on January 8.
Concerns about the virus’s spread have been raised as a result of the country’s rapid repeal of COVID regulations, which has overwhelmed the country’s fragile health care system.
The Japanese yen was last up nearly 0.5 percent at 133.83 per dollar, but it remained close to the previous session’s one-week low of 134.50.
Sterling gained 0.19 percent to $1.2040, but it was still relatively close to its three-week low of $1.1993 last week.
At $1.0628, the euro was up 0.15 percent.
“Numerous nations embracing an extra layer of testing for voyagers showing up from China reflect stumbled resumption of movement in the midst of China’s episode,” said Vishnu Varathan, head of financial matters and methodology at Mizuho Bank. ” Additionally, this may increase concerns regarding new COVID strains that could disrupt the global recovery once more.”
The two-year Treasury yield, which typically moves in line with expectations for interest rates, lost overnight as a result of rising concerns about a U.S. recession and the uncertain outlook for the global economy. At one point, it was 4.3512%.
In the meantime, the yield on the standard 10-year Treasury note from the United States peaked overnight at 3.8920%, a level that was higher than one month earlier. [ US/] was steady at 104.28 against a basket of currencies.
More Yen falls due to Bank of Japan action
Moh Siong Sim, a currency strategist at Bank of Singapore, stated, “Near term, there’s still the big question mark as to how soon can we get over this COVID resurgence.” However, I believe that China’s medium-term growth outlook can be more steady and less volatile, which means that the rest of the world could benefit as well.”
The was last up 0.16 percent at $0.6751, and the was up 0.33 percent at $0.6331.
The Chinese currency increased slightly to 6.9932 dollars.
Ether gained 0.26 percent to $1,192.60 in cryptocurrencies, but both are on track for a decline of more than 60 percent this year.
