Please use symbol entry at top right of page to search

FOREX-Dollar gains as China COVID worries spur safe-haven buying

       By Ankur Banerjee
       SINGAPORE, Nov 21 (Reuters) - The U.S. dollar was firmly
higher against major currencies on Monday, while China's yuan
slipped as sentiment was soured by rising COVID cases and
tightening restrictions in some cities in the world's
second-biggest economy.
    China's capital Beijing reported two deaths for Nov. 20,
with the city's most populous district urging residents to stay
at home on Monday, extending a request from the weekend as the
country fights numerous COVID-19 flare ups.
    The rising cases and the new deaths have cast doubt on the
hopes of an early easing in strict pandemic restrictions that
have stifled the economy.
    "The outlook for China's zero-COVID market will remain a key
source of volatility," said Carol Kong, a currency strategist at
Commonwealth Bank of Australia.
    "If we do see another set of step up in restrictions, it
indicates to me that the Chinese officials are still wary of any
eventual reopening."
    The People's Daily newspaper, the mouthpiece of the Chinese
Communist Party, on Monday published an article reiterating the
need to catch infections early but avoid taking a
"one-size-fits-all" approach.
    The onshore yuan opened at 7.1451 per dollar and
weakened to a low of 7.1708, the softest level since Nov. 11.
     The dollar index, which measures the greenback
against six major peers, rose 0.412% to 107.330 on Monday,
touching its highest level since Nov. 11. The index advanced
0.5% last week, clocking its biggest weekly gain in a month as
investors flocked to the safe haven currency.
    Despite Monday's gains, the index remains on pace for its
worst monthly performance since July 2020.
    Hawkish comments from Federal Reserve officials have helped
the dollar stabilise after its sharp losses earlier in November,
when slightly cooler than anticipated inflation data fanned
investor hopes of a slowdown in interest rate hikes.
    "Fed has been pushing back against the dovish narrative the
market has had after the October inflation data," said Moh Siong
Sim, currency strategist at Bank of Singapore, noting that the
comments have provided support for the U.S. dollar.
    Investors will be keenly interested in the minutes from the
Fed's November meeting due to be released on Wednesday for any
hints on how high officials ultimately expect to raise interest
    Elsewhere, cryptocurrencies remained under pressure, with
bitcoin down 0.63% to $16,153.00. FTX owes its 50
biggest creditors nearly $3.1 billion, according to bankruptcy
filings, as the collapsed crypto exchange undertakes a strategic
review of its global assets.
    The euro was down 0.46% to $1.0277, set for a
three-day losing streak and hovering at lowest level since Nov.
14, while sterling was last trading at $1.1831, down
0.47% on the day.
    The Australian dollar fell 0.49% versus the
greenback to $0.664, while the kiwi was down 0.41% at
    Currency bid prices at 0559 GMT
 Description      RIC         Last           U.S. Close  Pct Change     YTD Pct     High Bid    Low Bid
                                              Previous                   Change
 Euro/Dollar                  $1.0282        $1.0326     -0.42%         -9.55%      +1.0333     +1.0273
 Dollar/Yen                   140.5050       140.3950    +0.02%         +22.09%     +140.5650   +140.3000
 Euro/Yen         Dollar/Swiss                 0.9555         0.9547      +0.12%         +4.79%      +0.9562     +0.9531
 Sterling/Dollar              1.1831         1.1885      -0.53%         -12.59%     +1.1895     +1.1822
 Dollar/Canadian              1.3411         1.3390      +0.21%         +6.12%      +1.3423     +1.3385
 Aussie/Dollar                0.6649         0.6673      -0.36%         -8.54%      +0.6681     +0.6637
 NZ                           0.6130         0.6152      -0.37%         -10.45%     +0.6169     +0.6126

 All spots
Tokyo spots
Europe spots
Tokyo Forex market info from BOJ

 (Reporting by Ankur Banerjee in Singapore; Editing by
Muralikumar Anantharaman & Shri Navaratnam)

Copyright © Reuters 2008. All rights reserved. Republication or redistribution of Reuters content, including by caching, framing or similar means, is expressly prohibited without the prior written consent of Reuters. Reuters and the Reuters sphere logo are registered trademarks and trademarks of the Reuters group of companies around the world.

Search News

Filter Results

Publication Date
  • All

News, commentary and research reports are from third-party sources unaffiliated with Fidelity. Fidelity does not endorse or adopt their content. Fidelity makes no guarantees that information supplied is accurate, complete, or timely, and does not provide any warranties regarding results obtained from their use.