fbpx
  • About us
  • Advertise
  • Contact
  • Nominate
  • Client’s Voice
  • Login
  • Register
📖 Magazine
The Global Economics
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
  • Home
  • Banking
  • Non Banking
  • Markets
  • Infrastructure
  • Lifestyle
  • FeatureNew
  • Awards
No Result
View All Result
The Global Economics
No Result
View All Result
Home Markets Forex

Dollar stabilizes as China Covid cases persist, inviting stricter curbs

The antipodean currencies are used as liquid proxies for the Chinese yuan and the sudden changes have caused the Aussie AUD=D3 to sink around 1% and has gained 0.125 to $0.6614

Riya Thomas by Riya Thomas
November 22, 2022
in Forex, The Global Economics, Top Stories
Reading Time: 2 mins read
0
Dollar stabilizes as China Covid cases persist, inviting stricter curbs

Dollar stabilizes as China Covid cases persist, inviting stricter curbs

27
SHARES
148
VIEWS
FacebookTwitterRedditWhatsAppLinkedInShare Link

The dollar witnessed a halt in its strong and sudden gains succeeding the investor convergence to the safe currency over the rise in Covid cases in China

The dollar witnessed a halt in its strong and sudden gains succeeding the investor convergence to the safe currency over the rise in Covid cases in China. However, the ‘cautious risk sentiment’ have kept the greenback in demand, reports Reuters. The currencies of Australia and New Zealand have been affected by the new stretch of risk aversion in the markets.

The antipodean currencies are used as liquid proxies for the Chinese yuan and the sudden changes have caused the Aussie AUD=D3 to sink around 1% and has gained 0.125 to $0.6614. On Monday, the Aussie AUD=D3 edged 0.2% to linger around $0.6657, which marks the declining session for the fourth consecutive time and moving away from the recent two-month high of $0.6798.

The kiwi NZD=D3 fell more than  AUD, dipping 0.8%, and was last 0.15% higher reaching $0.6109. China is currently witnessing a surge in daily Covid cases more strict measures are being implemented in hubs like Shanghai and Beijing. More than 28,000 new infections were reported in the country. Deaths were also reported in China due to the virus for the first time since May.

 

Dollar stabilizes as China Covid cases persist, inviting stricter curbs
Dollar stabilizes as China Covid cases persist, inviting stricter curbs

China’s reopening is witnessing a massive impediment and is proving to be an uncertain time for markets. The chances of spreading the virus could invite much stricter restrictions and new lockdowns could restrict the growth. The tighter curbs could affect the growth and consumption rates. The constraints would invite a weaker demand for risk assets and a slower growth prospect.

In Asia trade on Tuesday, the offshore yuan CNH=D3 traded 0.1% higher at 7.1665 per dollar, after falling more than 0.7% overnight. The currency strategist at Australian National Bank, Rodrigo Catril states that the safety appeal of the US dollar is returning as the China Covid cases increase, keeping the markets worried. Along with other currencies, the Japanese Yen plunged more than 1% to the weaker side of 142 per dollar and the last traded value stands at 142.01.

“The curiosity is how Japan has also shown a great deal of sensitivity … if anything, the takeaway there is that Japan’s safe-haven appeal is no longer there,”  says Rodrigo Catril. He further adds that the situation is more like a “cork in the ocean”  which is subjected to risk avoidance along with having movements in 10-year treasury yields.

The standard 10-year Treasury yield US10YT=RR earned out a marginal gain and last stood at 3.825%.  U.S. Treasury yields across most maturities reached higher overnight because the investors continued to re-price expectations to see how high the Federal Reserve will increase rates as it attempts to bring inflation down from the 40-year high.

The U.S. dollar index =USD was last 0.06% lower at 107.71. It rose close to 0.8% overnight and became the largest daily gain since November 3. The euro EUR=EBS increased reaching 0.09% at $1.0250, holding some of its 0.8% overnight loss, while the sterling GBP=D3 grew 0.24% to $1.1843, after falling more than 0.5% overnight.

Speeches delivered by Fed speakers overnight delivered few surprises, with Loretta Mester, Cleveland Fed President announcing that the central bank can downshift to smaller interest rate hike increases from next month, reports Reuters. The real-world impact of interest rate hikes is likely greater than what its short-term rate target implies says San Francisco Fed President Mary Daly.

Tags: antipodean currenciesAustralian DollarAustralian National BankchinaCOVID_19dollarinvestor convergenceus
Riya Thomas

Riya Thomas

Related Posts

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds
Funds

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

by Riya Thomas
March 24, 2023
China’s March Towards Automobile Dominance
Clean Energy

China’s March Towards Automobile Dominance

by The Global Economics
March 24, 2023
Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market
Real Estate

Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

by Rahil Adnan
March 24, 2023
Ford’s Electric Vehicle Unit Forecasts $3 Billion Loss in 2023
Transportation

Ford’s Electric Vehicle Unit Forecasts $3 Billion Loss in 2023

by Riya Thomas
March 24, 2023
40% Rise in Puig Annual Revenues up to €3.6 billion, in 2022
Fashion

Puig Annual Revenues Skyrocket 40% up to €3.6 billion, in 2022

by Rahil Adnan
March 24, 2023
Facebook Twitter Instagram Youtube LinkedIn Soundcloud
The Global Economics

The Global Economics Limited is a UK based financial publication and a quarterly business magazine giving thoughtful insights into the financial sectors on various industries across the world. Our highlight is the prestigious country specific Annual Global Economics awards program where the best performers in various financial sectors are identified worldwide and honoured.

DMCA.com Protection Status

  • Privacy
  • Legal
  • Terms of Use
  • Client’s Voice
  • Server Status

norton verified - the global economics

Latest Posts

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

Hungary nears agreement with European Union to access nearly $ 30 billion frozen funds

March 24, 2023
China’s March Towards Automobile Dominance

China’s March Towards Automobile Dominance

March 24, 2023
Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

Housing Risk in South Korea Worsened Due to Bizarre $828 Billion Loan Market

March 24, 2023
Download The Global Economics PWA to your mobile or Desktop
PWA App Download
Download The Global Economics Android App to your mobile or Desktop
Android App
Download The Global Economics IOS App to your mobile or Desktop
IOS App

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

No Result
View All Result
  • About us
  • Awards
  • Magazine
  • Client’s Voice
  • Exclusive Coverage
  • Nominate
  • Login
  • Sign Up

All Rights Reserved © 2020 | 🇬🇧 The Global Economics, Business Finance Publication - www.theglobaleconomics.uk 🌏

Welcome Back!

Sign In with Facebook
Sign In with Linked In
OR

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Sign Up with Facebook
Sign Up with Linked In
OR

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In
-
00:00
00:00

Queue

Update Required Flash plugin
-
00:00
00:00
Go to mobile version