Dollar Rises On Safe-haven Appeal
The U.S. dollar gained in strength on Monday as worries a surge in coronavirus cases across Europe and fears of fresh lockdown moves by the British government pushed down stock prices and lifted the currency’s safe-haven appeal.
Markets were also awaiting a slew of Fed speeches including Chairman Jerome Powell for clues on monetary policy.
Powell and Treasury Secretary Steven Mnuchin will speak before the House Financial Services Committee on the CARES Act on Tuesday.
Speeches by Fed members Lael Brainard, Charles Evans, Raphael Bostic, James Bullard, Mary Daly and John Williams are also scheduled this week.
On the economic front, a report on existing home sales is due on Tuesday, and data on home prices is due out on Wednesday. Later on in the week, new home sales data and durable goods orders data are due.
The dollar index rose to 93.78 by mid morning, and despite paring some gains, was still firmly in positive territory at 93.56, up nearly 0.7% from previous close.
Against the Euro, the dollar was stronger by about 0.6% at $1.1772. Around noon, the currency had firmed up to $1.1732.
The Pound Sterling dropped to a low of $1.2776 before recovering to $1.2815, still trailing previous close by a notable margin of over 0.8%.
The Japanese currency Yen was down marginally at 104.68 a dollar, despite having firmed up to 104.01 early on in the session.
Against the Aussie, the dollar was hovering around 0.7225, gaining more than 0.85% from Friday’s level.
The dollar was firmer by about 0.35% against Swiss franc at 1.0934, and against the Loonie, it was up fetching C$1.3310.