Dollar rises as growth worries spur risk aversion

(mtag101702) Editor: Peter Nurse

investing. com – The dollar rose in European trade on Friday. With the increase in Covid-19 events again, investors flocked to the safe harbors, avoiding risk, due to the concerns of the global economic recovery.

Measures the performance of the US dollar against a trade-laden basket of 6 major currencies. US dollar index rose 0.1% to 92,505, hovering close to the three-month high of 92,844 on Wednesday.

USD/JPY 110.06, up 0.3%, EUR/USD 1.1827 down 0.1% and AUD/USD lost 0.1% at 0.7419.

Concerns are growing that the fast-spreading delta variant of the Covid-19 virus could wreak havoc on the global economic recovery, which is already showing signs of weakness.

As a result of these concerns, the 10-year Treasury yield slumped 1.25% to the lowest level in nearly five months on Thursday, putting the dollar under pressure. However, it has since risen to 1.34%. Just two weeks ago, it was seen at 1.54% points.

“One of the biggest risks to global growth is that we declared an early victory over Covid-19,” San Francisco Fed Leader Mary Daly said in an interview with the Financial Times.

Daly added, “if the global economy…can’t reach high vaccination rates, if Covid-19 doesn’t get behind us, that means headwinds for US growth. ”

Japan declared a state of disbelief for Tokyo as events escalated. This means that the upcoming Olympic Games will be played without spectators. The number of deaths and incidents is very high in Southeast Asia, and there is an increase in infections in regions such as the USA and England.

“One of the biggest bearish risks to continued stable economic growth is new outbreaks,” OECD secretary-general Mathias Cormann said on Thursday.

The patchy state of the economic recovery was seen in the weekly US unemployment data released on Thursday. New applicant the number of people experienced an unexpected increase last week.

on the other hand GBP/USD fell 0.1% to 1.3768. The UK economy grew less than expected in May. Flash GDP

The reading showed 0.8% growth, a decline from the previous month’s 2% growth.

on the other hand USD/CNY traded at 6.4881, down 0.1%. China CPI

The reading showed a smaller-than-expected 1.1% year-on-year growth in June, but contracted a larger 0.4% month-on-month. PPI, on the other hand, showed an annual growth of 8.8%.

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