Dollar Rises as Yen Drops on Omicron Worries

Risk-sensitive currencies like the Australian dollar were higher as stocks motored upwards. However, the euro tugged the trend and cut 0.2% to $1.1287, while the dollar index added 0.2% to 96.321.

Analysts told it was hard to read too much into the moves, with numerous traders taking time off for Christmas or the end of the year. This week’s primary driver was the optimism that Omicron would not derail economic momentum.

Saxo Bank analysts stated that the Omicron variant persists to rage and fails to register on this market, even as global cases completed a million for the second day running.

The dollar climbed versus the safe-haven yen, earning 0.1% to 114.98, its strongest since late November. Analysts told end-of-quarter investor flows also impacted the currency. Hence, the strength of investors’ risk appetite struck the yen.

Sterling declined 0.1% to $1.3420 while gaining 0.1% versus the euro to 84.14 pence.

Elsewhere, Turkey’s lira fell more than 2% to around 12 per dollar, eating further into the vast gains made the prior week, as worries persisted over flying inflation and unorthodox monetary policy.