Stability of dollar with the tightening of Covid restrictions in China

The price of the dollar stabilized on Tuesday after rising the previous day, as investors flock to the safe-haven currency in light of fears of an increase in Corona infections in China, while the Bitcoin currency is under pressure after fears related to the repercussions of the collapse of the cryptocurrency platform (FTX).

The euro rose 0.14% to $1.0258, after falling 0.8% on Monday, while the pound sterling rose 0.19% to $1.1838 and partially compensated for 0.6% losses. The dollar fell to 141.86 yen, down 0.18 percent, after rising 1.2 percent.

On Monday, Beijing warned that it was facing the most severe wave of Covid-19, and in light of the rise in Corona infections, it was forced to take new restrictive measures. Deaths from the virus were also recorded in the capital for the first time since May.

The main factor in the dollar’s movements in the past months has been the market’s expectations regarding the extent of the Federal Reserve’s interest rate hikes.

The dollar recorded declines this month on hopes that the US is nearing the end of its interest rate hike cycle, but hawkish statements by policy makers halted this trend at the end of last week, which also contributed to the gains made on Monday.

The desire to move away from risk in light of developments in China particularly affected currencies that are often used as alternatives available to the Chinese yuan, as the Australian dollar fell by about 1 percent on Monday, and compensated for some losses on Tuesday, rising 0.24 percent to $ 0.6631.

The dollar fell 0.5 percent abroad against the yuan to 7.1412, after rising 0.7 percent overnight.

In cryptocurrencies, Bitcoin fell to a two-year low of $15,479 on Monday, dragged down by investors’ resort to the dollar, as well as concerns about the status of cryptocurrency trading platform Genesis.