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FOREXRisk FX Retreat Catapults Dollar to 3Month Top

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LONDON, July 19 Reuters Currencies such as the Australian dollar, the Canadian dollar, Norways crown and Britains pound took a beating on Monday, catapulting the U.S. dollar to its highest in 3 months as a worldwide surge in coronavirus cases hit sentiment in global markets.

The only major currency which did not cede ground to the dollar was the safe haven Japanese yen, which gained 0.3 on the day to 109.74 yen to the dollar.

With England lifting all COVID19 social restrictions on what some local media has dubbed Freedom Day, the continued spread of the highly contagious Delta variant of the coronavirus drew further doubt from investors about whether a total economic recovery to prepandemic levels is possible.

Earlier this week, British health minister Sajid Javid announced he had tested positive for COVID19 and was in selfisolation, also forcing Prime Minister Boris Johnson and finance minister Rishi Sunak into quarantine. Sterling hit a 3month low against the dollar of 1.3703.

The dollar benefited from the risk aversion in global markets, with the index that measures its strength against peer currencies hitting its highest since April 5. The greenback also benefited from the divergence in transAtlantic real yields.

Germanys 10year inflationlinked bond yield fell to its lowest in nearly two years on Monday on concerns that the resurgent Delta COVID19 variant would undermine economic recovery and weigh further on euro zone inflation.

Were starting to see the FX…

Stocks on worst run in 18months amid global COVID19 surge

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