Schedule dollar to pound at intervals of 60 minutes
Safe currencies like the yen and the dollar traded near multi-month highs against the riskier Australian dollar and British pound on Tuesday, as fears grow that a ruthless variant of the coronavirus could reverse the global recovery.
Cryptocurrencies also fell, with Bitcoin dropping below $ 30,000 for the first time in about a month.
The yen traded at 80.09 per Australian dollar, close to a more than five-month high of 80.05 hit on Monday. It stood at 149.48 per pound, approaching the nearly three-month high of 149.35 reached earlier.
The dollar touched a nearly eight-month high of $ 0.7317 per Aussie on Tuesday before trading at $ 0.7319 and changed hands at $ 1.36625 a pound after hitting a high of $ 1.3655 since early February. previous session.
The Australian dollar accelerated its decline as the minutes of the Reserve Bank of Australia meeting this month was seen by some economists as a sign that the central bank may reverse its stimulus cut.
The yen edged ahead of the dollar, climbing to 109.07 per dollar on Monday for the first time since late May, helped by a sharp decline in US Treasury yields to 1.1740% for the first time since mid-February. On Tuesday, the dollar was given 109.46 yens.
The rapidly spreading delta variant of the coronavirus is currently the dominant strain worldwide and has been accompanied by a spike in infections in the United States, especially in regions where vaccinations have slowed down.
Meanwhile, Boris Johnson’s “Freedom Day”, which ended more than a year of COVID-19 quarantine restrictions in England, was marred by rising infections and the forced self-isolation of the British prime minister after Health Minister Sajid Javid tested positive for the virus.
In Australia, almost half of the 25 million people live in quarantine to suppress the Delta variant outbreak.
“What is probably about the markets right now is … a surge in infections occurring in developed markets with high vaccination rates,” National Australia Bank analyst Tapas Strickland wrote in a note to clients.
“This suggests that it may be necessary to extend the quarantine restrictions against the spread of the virus for a longer time”, which is delaying the recovery of the global economy, – he said.
The euro fell 0.1% to $ 1.17885 after falling yesterday to its lowest level since early April at $ 1.1764.
The European Central Bank announces the policy on Thursday, and market participants are intrigued to see the monetary authority implement changes in its strategy, unveiled earlier this month.
“The ECB is expected to solidify its dovish policy setting at this week’s meeting,” paving the way for further easing in the euro in the coming months, Rabobank strategist Jane Foley wrote in a research note.
At the same time, the dollar is likely to maintain support from demand for defensive assets, pushing the euro towards $ 1.17 by the end of the year, she said.
In terms of cryptocurrencies, Bitcoin fell to $ 29,500, a level not seen since June 22, before stabilizing with a 4.1% loss to $ 29,559.10. The price of ether, its competitor, fell 4.8% to $ 1,730.33, also close to a monthly low.