Dollar Holds Onto Its gains on Fears of Covid-19 And Uncertainty

The dollar held on to its gains Tuesday, but the rest of the safe-haven currencies witnessed quiet transactions as investors were reluctant to form positions before the US presidential elections scheduled for next week, even as concerns grow about the second wave of Covid-19 and its economic effects.

On Monday, the stock market witnessed the biggest selling in a month and the rise in bonds, but the foreign exchange market activity remained relatively calm, with limited price movements in early trading today.

But analysts warn that investors are clearly wary after the United States, Russia and France recorded a new daily record high for coronavirus cases. They said that prices are not moving much due to the reluctance of investors to form positions before the US presidential election on November 3.

The euro against the dollar in the latest trading was $ 1.18045, without much change during the session.

The dollar index, which measures the performance of the greenback against a basket of currencies, rose slightly to 93.121.

The yen and the Swiss franc rose, both of which would buy them when investors are concerned.

The Australian and New Zealand dollars, which are usually highly risk-sensitive, fell only slightly overnight and gained in early trade in Europe.

The pound weakened overnight but rose above $ 1.30 on Tuesday at $ 1.3020. It fell slightly against the euro at 90.79 pence.