US Dollar Rises Due to The Increase in Covid-19 Cases

The dollar rose Thursday, November 19, as widespread optimism about COVID-19 vaccines met with concerns about rising numbers of cases and risks to a fragile global economic recovery.

The dollar has also been caught between opposing powers, as it received support from seeking safe haven purchases while fresh speculation about a somewhat monetary easing to boost the economy.

The euro fell against the dollar, 0.2%, to last trade at $ 1.1833.

As financial support plans fade away as President Donald Trump’s refusal to concede his election defeat dominates lawmakers ’attention, speculation that the US Federal Reserve may ease monetary policy in December increases.

An index that tracks the performance of the dollar against a basket of currencies settled at 92.55, but near the weakest level since August.

But the Scandinavian currencies and the Australian dollar, benefiting from the dollar’s recent decline, gave up their gains.

The Norwegian krone fell 0.3% against the US dollar and the euro to 9.0535 and 10.7165, respectively. The Swedish krona fell by the same margin against the two currencies, while the Australian dollar fell 0.4% to 0.7278.

The safe-haven Japanese yen slipped 0.2% against the US currency to 103.98, after gaining 1.6% in the week since Pfizer announced promising results for trials of its Covid-19 vaccine.

The US job numbers will be closely watched today, Thursday, as they are an important factor ahead of the next steps for the US central bank.

The pound slipped 0.4% to $ 1.3210 and 0.2% to 89.53 pence against the euro after The Times reported that European leaders will urge the European Commission to publish plans for Brexit without an agreement with the approaching deadline for a deal between the two sides at the end of the year.