Bullish investors lift risk-sensitive currencies as Omicron fears fade By Reuters
2021-12-23 18:05:11
more 
1567
Bullish investors lift risk-sensitive currencies as Omicron fears fade © Reuters. FILE PHOTO: A U.S. one dollar banknote is seen in this illustration taken November 23, 2021. REUTERS/Murad Sezer/Illustration/File Photo

LONDON (Reuters) - Bullish investors left the dollar near a one-week low and lifted riskier currencies such as the Australian dollar and British pound on Thursday, as fears about the fallout from Omicron were sidelined.

The euro slipped by 0910 GMT but held above $1.13 while the dollar index, at 96.159, was unchanged on the day but near its weakest since last Friday.

The risk-sensitive Australian dollar rose 0.3% to$0.7238 after Wednesday's 0.86% surge.

Sterling gained 0.2% to $1.3385 after a 0.63% rally.

"AUD is as usual the flag-bearer for bullish sentiment about the world economy," said Marshall Gittler, Head of Investment Research at BDSwiss Holding.

Risk appetite has improved since Monday, when markets were rattled by government restrictions relating to the spread of Omicron.

However, data on Wednesday showed U.S. consumer confidence improving more than expected in December, suggesting the economy would continue to expand in 2022 despite a resurgence in COVID-19 infections and reduced stimulus spending.

There was also encouraging news from a South African study, which suggested reduced risks of hospitalisation and severe disease in people infected with Omicron compared with the Delta strain.

The dollar rose against the Japanese yen - another safe-haven currency - and was up 0.2% at 114.3, near a one-month high from Wednesday at 114.37.

While the dollar has lost out to other currencies amid the rebound in investor risk sentiment this week, most analysts expect it to strengthen in the weeks ahead as the Federal Reserve begins to tighten monetary policy faster than other central banks.

"While the recent improvement in risk sentiment on the back of reduced Omicron fears is currently weighing on the U.S. dollar, we expect the correction lower to prove shortlived," Lee Hardman, a currencies analyst at MUFG, said.

"Hawkish comments from Fed officials over the past week including from Fed Governor Waller and San Francisco Fed President Daly have signalled that they are considering raising rates as soon as the March FOMC meeting," he added.

Elsewhere the Turkish lira extended its startling rebound this week and was last up another 3% at 11.6 lira per dollar, having traded as weak as 18.4 on Monday.

The big gains follow weeks of heavy losses and came after President Tayyip Erdogan said the government and central bank would guarantee some local currency deposits against FX depreciation losses.

Graphic: World FX rates https://graphics.reuters.com/GLOBAL-CURRENCIES-PERFORMANCE/0100301V041/index.html

Statement:
The content of this article does not represent the views of fxgecko website. The content is for reference only and does not constitute investment suggestions. Investment is risky, so you should be careful in your choice! If it involves content, copyright and other issues, please contact us and we will make adjustments at the first time!

Related News

您正在访问的是FxGecko网站。 FxGecko互联网及其移动端产品是中国香港特别行政区成立的Hitorank Co.,LIMITED旗下运营和管理的一款面向全球发行的企业资讯査询工具。

您的IP为 中国大陆地区,抱歉的通知您,不能为您提供查询服务,还请谅解。请遵守当地地法律。