The dollar was steadily traded near a five-day low
The greenback was steady on Tuesday, holding close to the previous session’s five-day low. Notably, markets seemed less concerned by the spread of the Delta strain. Meanwhile, the risk-sensitive New Zealand dollar gained after hawkish comments from the central bank.
Risk appetite in global markets gained after the U.S. FDA gave full approval to the Pfizer coronavirus vaccine. Remarkably, that could accelerate inoculations in the U.S.
Growing coronavirus cases caused by the highly infectious Delta strain have fired worries about the recovery from the global health crisis.
The U.S. dollar was flat on the day at 93.004 against a basket of currencies. It reached a five-day low of 92.947 on August 23 and had its biggest one-day decline since May.
The dollar against the safe-haven Japanese yen gained 0.1% and traded at 109.805 yen per dollar.
Additionally, the euro fell about 0.1% versus the greenback, at $1.1738.
The market is waiting for the Jackson Hole conference on Friday. Some investors anticipate the U.S. Federal Reserve Chair Jerome Powell to suggest the possible timeline for tapering monetary stimulus.
Coronavirus infections counts are also closely watched, especially in China, where outbreaks seem to be coming under control, and in New Zealand. Remarkably, in the country, monetary policy was put on hold last week while it locks down to contain the Delta strain.
The number of people hospitalized for COVID in France is at the highest level in two months
French health authorities reported the number of individuals hospitalized for coronavirus was at the highest levels in more than two months.
Furthermore, according to Monday’s data, business activity growth in the U.S. slowed for a third straight month.
However, the Australian dollar gained 0.3% at $0.72305.
Meanwhile, its New Zealand counterpart, New Zealand dollar, surged 0.7% at a 6-day peak of $0.69375.
The Reserve Bank of New Zealand left rates on hold at a record-low 0.25% last week. However, it flagged tightening before the 2021’s end.
Furthermore, firmer commodity prices had also supported the risk-sensitive Australian and New Zealand dollars earlier in the session.
Meanwhile, the Norwegian dollar gained 0.4% versus the euro, with the pair changing hands at 10.4288. Additionally, the Canadian dollar gained 0.2% versus the U.S. dollar.
Moreover, the dominant cryptocurrency, Bitcoin, edged back and traded at $49,308. Remarkably, Bitcoin surged above $50,000 for the first time since May on Monday.
