Dollar Settled And High-Risk Currencies Decline Due to Omicron’s Fears

Currencies including the Australian dollar and the British pound fell on Monday amid fears that further restrictions may be imposed in Europe to contain the mutated Omicron from the coronavirus.

Investors shifted their focus to the potential impact of the rapid spread of the new mutation after the Netherlands imposed a general closure on Sunday, while local newspapers in Italy reported that new restrictions were being considered there as well.

The risk aversion was evident when European markets opened, but it eased slightly during the session.

And the Australian dollar, which is considered an indicator of risk appetite, fell 0.2 percent to $ 0.7109 by 1230 GMT, after hitting its lowest level in13 days.

The British pound fell 0.2 percent to 1.32105 dollars.

The decline in oil prices has also hurt the commodity-linked currencies. The Norwegian krone fell, with the euro gaining about 0.4 percent against the krona.

The US dollar index settled at 96.544 by 1231 GMT, close to last month’s peak of 96.938, which was its highest level since July 2020.

The euro also rose 0.3 percent to 1.12695 dollars, recovering relatively after falling 0.8 percent on Friday, after the European Central Bank took initial steps to exit the pandemic stimulus program.

China cut its key lending rate for the first time in 20 months to support its sluggish economy, sending the yuan to a 10-day low.

The Turkish lira plunged to another record low on Monday despite the central bank’s $6 billion intervention this month, after President Recep Tayyip Erdogan reiterated his support for his unconventional policy of cutting interest rates by citing the prohibition of usury in Islam.

The two cryptocurrencies, Bitcoin and Ether, headed for losses for the second day in a row. The price of Bitcoin reached about $ 45,765.67, after falling far from its all-time high of $ 69,000 in November.