Dollar and yen rise on risk-off mood due to virus and economic worries

The dollar and the yen gained on Thursday as growing fears about a second coronavirus wave favored the appetite for safe-haven currencies.

Several U.S. states reported a surge in new coronavirus cases and Beijing imposed travel restrictions in the capital to contain a second outbreak of the virus. Both served as a reminder of the dangers of re-opening economies before a vaccine is developed. 

The Chinese yuan rose to $7.0735 in onshore trade.

The euro stood at 1.1256 on the dollar, while the Japanese yen rose to $106.86. The dollar steadied at 0.9493 against the Swiss franc. 

The pound slipped to 1.2557 on the dollar and traded at 89.65 pence on the euro. This came ahead of a Bank of England meeting where policymakers will discuss the expansion of quantitative easing to support the British economy. 

Australia’s unemployment rate jumped to its record high in two decades, showing the impact of the lockdown measures on its labor sector. The Aussie dropped to $0.6838, while the kiwi slid to $0.6447. 

The yen gained on the Aussie and the kiwi, highlighting the market’s risk-off mood.