The currency recovers from Omicron’s chaos, but analysts warn of volatility first


Ottawa — The Asian currency market settled on Monday after the first shock of Ottawa’s discovery rushed to cover investors last week, but analysts still know little about the new coronavirus stock. Warned about more volatility.

The risk-sensitive Australian dollar rose 0.37% to $ 0.7139, down 1% on Friday and then to $ 0.71125 for the first time since August 20th.

The Mexican peso also surged 0.93 percent to 21.7280 dollars after dropping to the weakest in almost 14 months at 22.1540 on Friday.

The safe harbor yen, which was the biggest beneficiary of the escape to quality, fell 0.09 percent to 113.60 yen per dollar. The Japanese currency surged 2% to 113.05 at some point on Friday.

Companion shelters in the Swiss franc fell 0.45 percent to 0.9257 per dollar.

The South African rand recovered from Friday’s year-to-year low of 16.3675 per dollar, up 0.93 percent to 16.1400.

South Africa discovered a variant of Omicron last week. Mutations in peplomers are rapidly strengthening border control around the world, suggesting that they may be resistant to current vaccines.

Despite the speed of response, Omicron has been detected in places such as Australia, the United Kingdom, Canada, Germany and Hong Kong.

As a reassuring note, a South African doctor who first suspected another coronavirus strain said that Omicron’s symptoms were “very mild” so far.

BioNTech said Friday that it could know within two weeks if it would need to remake the Pfizer-developed vaccine.

“Until then, market volatility is likely to remain elevated,” Rodrigo Catril, senior FX strategist at National Australia Bank, wrote in a client note. “The market is forced to reassess its global growth outlook until we know more.”

“We expect the currency to fluctuate this week,” said Joseph Capurso, a strategist at the Commonwealth Bank of Australia. “We don’t need much negative news about Omicron to push the AUD below $ 0.7000.”

President Joe Biden will provide up-to-date information on the US response to the new variant later on Monday.

After falling to a weekly low of 95.973 on Friday, the US dollar index, which measures currencies against six major peers, traded at 96.283.

While the dollar is in a position to benefit from uncertainty due to its position as a safe haven, Omicron has an outlook on when the Federal Reserve and other global central banks can raise interest rates. It’s cloudy.

The euro, which surged 0.98 percent on Friday as traders closed short positions, fell 0.32 percent to $ 1.12785.

Several European Central Bank officials, who remain dovish in the face of rising inflationary pressures, are obliged to speak on Monday, including ECB Governor Christine Lagarde.

Sterling was almost flat at $ 1.33325, below Friday’s 11-month low of $ 1.3278.

In cryptocurrencies, Bitcoin rose to about $ 57,400 and continued to recover from Sunday’s one-and-a-half month low of $ 53,308.93.

Kevin Buckland