The U.S. dollar surge amid Covid-19 tensions in China
Monday’s European trade session saw a surge in the U.S. dollar, as the concerns over the Covid-19 status in China that could hinder the rebound of the global economy reinforced the greenback flow.
The dollar index climbed by 0.5% at 107.365, close to its peak since the 1st of November.
During the past week-end, many cities all over China encountered new peaks in Covid-19 infected cases and reported also death cases for the first time in 6 months.
Accordingly, new measures and lockdowns has been proposed for many financial and economic centres, which elevate worries that the actions will influence the economy in China.
Regardless the dollar’s current earnings it is forecasted by Goldman Sachs that this is just a short-term dominance.
EUR/USD slipped 0.5% to 1.0272, close to its ground level since the 1st of November.
GBP/USD slumped by 0.5% at 1.1826.
USD/ JPY edged 0.3% to 140.80.
USD/CNY gained 0.6% to 7.1643, amid yuan’s slip to the lowest level in 10 days.
