Dollar jumps to 4-week high as week kicks off

2021-01-18 14:19:19 GMT (Economies.com)
Dollar jumps to 4-week high as week kicks off

The US dollar rose on Monday, extending its gains for the second straight day and hit a 4-week high, amid the market's risk-off sentiment due to concerns over the rising Covid-19 infections in most parts of the world, in addition to political tensions in Italy.

 

The dollar index rose more than 0.2% to the highest since December 21 at 90.95 points, after opening at 90.78, and hit a low of 90.71.

 

The index gained 0.5% on Friday, the second daily gain in 3 days, after the unveiling of a huge stimulus package in the US.

 

The greenback gained 0.7% last week, in its second straight weekly gain, and the largest weekly gain since late October.

 

The largest weekly gain in around 4 months came thanks to a jump by the US 10-year Treasury bonds yield above the 1% barrier for the first time since March 2010, and hit a 10-month high at 1.184%.

 

The US dollar shined as the best alternative investment, as the market's risk appetite dampened due to renewed concerns about the rising Covid-19 infections in most parts of the world, especially in China, the world's second largest economy.

 

China reported on Friday the largest daily increase in new Covid-19 cases in more than 10 months, especially after new infections in the northeastern Heilongjiang province tripled.

 

This spike is the equivalent to the number that led to imposing a full quarantine on more than 28 million people in Hubei province 8 months ago.

 

Most European countries are now under the strictest lockdown since the first coronavirus wave, especially after the UK identified the new Covid-19 strain.

 

As for Italy, political tensions are escalating as the fate of the current government is hinging on the results of Parliament's vote on Monday and Tuesday to continue in power.

 
 
 
  Symbol Last Change Chg.%
1.1911
-0.0143
1.1851%
1.3838
-0.0097
0.6972%
Tadawul
9242.28
-68.88
0.74%
25.247
-1.621
6.035%
66.283
4.812
7.828%
69.56
2.85
4.27%
1700.790
-39.040
2.244%
 
 
Live Forex Updates