Dollar climbs on new Asia coronavirus restrictions

The dollar rose on Monday amid renewed worries over COVID-19 restrictions in Asia, but investors are betting the greenback to fall as the Fed maintains dovish rates.

The dollar rose 0.3% against the Aussie and 0.4% against the kiwi as commodity prices fell over new COVID-19 outbreaks in Taiwan and Singapore. The greenback firmed at 0.7756 on the Aussie and at 0.7219 on the kiwi.

Against the yen and the euro, the dollar was little changed, but stood near major support levels. A dollar surge that followed high inflation data last week also faded as investors bet the U.S. Federal Reserve to keep rates low.

The dollar stood at $1.2130 against the euro and bought 109.37 yen. The dollar index traded at 90.397, just above major support at 89.677 and 89.206. 

The pound sat close to a 2 ½-month high of $1.4086 as Britain reopens its economy after a four-month lockdown. In onshore trade, the yuan steadied at 6.4380 per dollar.