Wednesday, 21 July 2021

US dollar hits three-month high on safe-haven buying


 The US dollar rallied to a three-month high in safe-haven buying on Tuesday, and investors remained right.  The rapidly spreading variant virus is causing concern because it could stifle global economic growth.

 Commodity currencies that are associated with risk appetite, such as the Australian dollar and New Zealand dollar, have experienced tough trends.  As worries about the highly contagious variant of the Delta virus flare up again, investors will choose to hedge or stay out.  Delta virus is currently the main novel coronavirus in the world.

 The number of infections in the United States has risen sharply, especially in areas where vaccinations are lagging.  The US dollar rose and US Treasury yields fell.  The 10-year US Treasury yield fell to a five-month low below 1.20% on Monday, as markets once again cast doubt on the economy's strong recovery from the outbreak.

 “The shift in relative growth expectations is weakening capital outflows from the United States and increasing the attractiveness of investments,” said Karl Schamotta, chief market strategist at Cambridge Global Payments.  in dollars.."

 “I think the dollar’s ​​safe-haven strength is justified, because global economic growth is weak and not as strong as it was in the quarter,” said Juan Perez, forex strategist and trader at Tempus Inc.  first, so all valuations and economic growth are now called into question in terms of high expectations, that's true"

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