Dollar climbs against risk currencies on coronavirus spike, fading U.S. stimulus hopes

The dollar rose on Monday as rising coronavirus infections in the United States and Europe and a stalling in U.S. stimulus talks prompted a cautious mood in the market. 

The United States and France reported their highest coronavirus cases for two straight days. Meanwhile, Italy implemented new curfews for bars and restaurants and Spain announced a new state of emergency.

The Oxford/AstraZeneca vaccine has proved successful on elderly people. A staff in a major hospital in Britain were told to prepare for a vaccine as soon as next month. 

However, the news did not boost sentiment. Chief global market strategist Stephen Innes at Axi said that hopes for a vaccine prevented a crash in the markets on Monday.

The dollar index gained 0.2% to 92.95. The euro/dollar pair slid 0.3% to 1.1831. The dollar gained 0.1% to 104.87 on the Japanese yen.

The Aussie was down 0.3% to 0.7118. The Nokkie dropped 0.9% to $9.3015 and by 0.7% to 11.0050 against the euro. 

The British pound slipped 0.3% to $1.2995 but steadied at 91 pence per euro. The yuan sank 0.4% to 6.6907 against the dollar in offshore trade.