Dollar falls; yen and Swiss franc gain in post-Omicron gyrations
Skip to main content
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
The Business Standard

Wednesday
July 06, 2022

Sign In
Subscribe
  • Home
  • Economy
  • Stocks
  • Analysis
  • World+Biz
  • Sports
  • Features
  • Epaper
  • More
    • Subscribe
    • COVID-19
    • Bangladesh
    • Splash
    • Videos
    • Games
    • Long Read
    • Infograph
    • Interviews
    • Offbeat
    • Thoughts
    • Podcast
    • Quiz
    • Tech
    • Archive
    • Trial By Trivia
    • Magazine
    • Supplement
  • বাংলা
WEDNESDAY, JULY 06, 2022
Dollar falls; yen and Swiss franc gain in post-Omicron gyrations

Global Economy

Reuters
01 December, 2021, 10:00 pm
Last modified: 01 December, 2021, 10:03 pm

Related News

  • Cenbank spent $7.62b reserve in FY22 to defend sliding Taka
  • Dollar gains with yen, Aussie drops as investors fret over recession risks
  • Euro under pressure as inflation fears send investors to dollar haven
  • Dollar gains, yields ease after Powell inflation comments
  • Rouble firms past 52 against dollar for first time since May 2015

Dollar falls; yen and Swiss franc gain in post-Omicron gyrations

The moves underlined the fragility of the calm that seemed to have settled over the foreign exchange markets earlier in the day

Reuters
01 December, 2021, 10:00 pm
Last modified: 01 December, 2021, 10:03 pm
Pound and US dollar bills are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo
Pound and US dollar bills are seen in this illustration taken January 6, 2020. REUTERS/Dado Ruvic/Illustration/File Photo

Summary:

  • Dollar off 0.3% at 112.775 yen
  • Sterling and Aussie rebound
  • Swiss franc gains on dollar

The US dollar fell on Wednesday morning in trading that saw the safe-haven yen and Swiss franc appreciate even as the risk-on British and Australian currencies rebounded from lows the day before.

The moves underlined the fragility of the calm that seemed to have settled over the foreign exchange markets earlier in the day.

Traders are weighing what the new Omicron variant of the coronavirus might do to plans that Federal Reserve Chair Jerome Powell signaled on Tuesday to move more quickly to raise US interest rates.

The dollar index , which measures the greenback against major currencies was down 0.3% on the day at 95.682 at 10:07 ET (1507 GMT), losing a similar amount to the Japanese yen and falling 0.1% against the Swiss franc .

The British pound , often considered a risk-on currency, was up nearly 0.4% at $1.3344. The pound on Tuesday had been knocked to its lowest level in nearly a year by fears over vaccine effectiveness against the Omicron variant .

"We've gotten these conflicting claims about the new variant, and Powell's comments really threw the markets for a loop," said Marc Chandler, chief market strategist at Bannockburn Global Forex.

"People are still pretty nervous," Chandler said.

Powell said on Tuesday that the risk of inflation had increased and he signaled the central bank may accelerate its bond-buying taper at its meeting later this month. 

The dollar showed little initial reaction on Wednesday morning to the ADP report on US private payrolls. It showed an increase of 534,000 jobs last month, slightly higher than the 525,000 jobs that economists polled by Reuters had forecast. 

"It means another solid jobs report" on Friday when the US government posts more comprehensive payroll numbers, Chandler said. "Friday's US jobs data is the next big thing."

The greenback is up 6% this year. November was its strongest month since June.

The euro was up 0.2% on the day at $1.1356 at 10:07 a.m. ET (1507 GMT).

Euro-dollar volatility gauges reached their highest levels of the year on Monday amid the conflicting virus and interest rate signals. The Omicron variant could slow Fed tightening and thus be good for the euro, ING strategists wrote in a client note.

"Both themes will be fed many fresh inputs over the next four weeks and thinning liquidity conditions point to bumpy conditions in FX markets," ING said.

Prior to the tailspin caused by Omicron's advent, the main driver of exchange rates had been expectations of the different speeds at which central banks will raise interest rates.

The Australian and New Zealand dollars also made gains, lifting them from one-year lows. The Aussie was up 0.5% at $0.7168 and the kiwi was up 0.6% at $0.6866 .

The Chinese yuan , a beacon of resilience in a turbulent few days, touched a six-month high of 6.3596 per dollar after better-than-expected November manufacturing data.

In cryptocurrencies, bitcoin was up about 2% at $57,885 at 9:04 ET (1404 GMT).

Top News / World+Biz

Dollar / Dollar Prices low / Dollar falls

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • China-led trade bloc holds promise, with some caveats
    China-led trade bloc holds promise, with some caveats
  • British Chancellor of the Exchequer Rishi Sunak listens as British Prime Minister Boris Johnson addresses his cabinet on the day of the weekly cabinet meeting in Downing Street, London, Britain June 7, 2022. Leon Neal/Pool via REUTERS
    UK Johnson plunged into crisis as Sunak, health minister quits
  • Representational Image. Photo: Pixabay
    Load shedding the best course of action for now: Experts

MOST VIEWED

  • A man displays new 2000 Indian rupee banknotes after withdrawing them from a State Bank of India (SBI) branch in Kolkata, India on 10 November 2016. Photo: Reuters
    India's crisis buffers are part optical illusion
  • General view of oil tanks and the Bayway Refinery of Phillips 66 in Linden, New Jersey, US, March 30, 2020/ Reuters
    Brent falls as recession fears deepen demand concerns
  • An India Rupee note is seen in this illustration photo June 1, 2017. REUTERS/Thomas White/Illustration/File Photo
    Rupee hits new lifetime low, settles at 79.36 against US dollar
  • Russian parliament. File Photo: Reuters
    Russian parliament passes first vote on war economy measures
  • People are seen on Wall Street outside the New York Stock Exchange (NYSE) in New York City, US, March 19, 2021. Photo :Reuters
    Is the US in a recession? GDP is not the only measure
  • The signature of the President of the European Central Bank (ECB), Mario Draghi, is seen on the new 50 euro banknote during a presentation by the German Central Bank (Bundesbank) at its headquarters in Frankfurt, Germany, March 16, 2017. REUTERS/Kai Pfaffenbach
    Euro slumps to two-decade low as recession fears bite

Related News

  • Cenbank spent $7.62b reserve in FY22 to defend sliding Taka
  • Dollar gains with yen, Aussie drops as investors fret over recession risks
  • Euro under pressure as inflation fears send investors to dollar haven
  • Dollar gains, yields ease after Powell inflation comments
  • Rouble firms past 52 against dollar for first time since May 2015

Features

The OPEC+ group of 23 oil-exporting countries met virtually on Thursday. Photo: Bloomberg

OPEC+ did its job, but don’t expect it to disappear

12h | Panorama
Mirza Abdul Kader Sardar with AK Fazlul Haque, Chief Minister of Bengal, at Haque's reception at the Lion Cinema, Dhaka, 1941. Photo: Collected

Panchayats: Where tradition clings to survival

13h | Panorama
Illustration: TBS

Universal Pension Scheme: Has it been thought through?

14h | Panorama
Last month Swapan Kumar Biswas, the acting principal of Mirzapur United College, was forced to wear a garland of shoes for ‘hurting religious sentiments.’ Photo: Collected

Where do teachers rank in our society?

1d | Panorama

More Videos from TBS

Sheikh Kamal Business Incubator to be inaugurated at CUET Wednesday

Sheikh Kamal Business Incubator to be inaugurated at CUET Wednesday

3h | Videos
Tejgaon becoming uninhabitable for illegal rickshaw garages, truck stands

Tejgaon becoming uninhabitable for illegal rickshaw garages, truck stands

3h | Videos
50 companies plan to invest big in South

50 companies plan to invest big in South

5h | Videos
Alal, Dulal sell for Tk30 lakh

Alal, Dulal sell for Tk30 lakh

5h | Videos

Most Read

1
Photo: Collected
Africa

Uganda discovers gold deposits worth 12 trillion USD

2
TBS Illustration
Education

Universities may launch online classes again after Eid

3
Meet the man behind 'Azke amar mon balo nei'
Splash

Meet the man behind 'Azke amar mon balo nei'

4
Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM
Bangladesh

Build Dhaka East-West Elevated Expressway, relocate kitchen markets: PM

5
File Photo: BSS
Energy

India pulls out of LoC funding for part of Rooppur power transmission work

6
Illustration: TBS
Interviews

‘No Bangladeshi company has the business model for exporting agricultural product’

EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Privacy Policy
  • Comment Policy
Copyright © 2022
The Business Standard All rights reserved
Technical Partner: RSI Lab
BENEATH THE SURFACE
Workers ready a passenger vessel with a fresh coat of paint to the deck ahead of the Eid-ul-Azha at a dockyard at Mirerbagh in South Keraniganj. The vessel getting the makeover plies the Bhandaria route and will take holidaying people from the city to their country homes. Eid will be celebrated on 10 June this year. The photo was taken on Monday. Photo: Mumit M

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net