Dollar climbs on rattled markets over virus mutation

The dollar firmed on Tuesday but was well below recent highs as a new coronavirus strain in Britain caused tension in currency markets.

The pound and the kiwi both slid 0.5% in Asian trade. The Aussie was down 0.4% and the euro 0.2% to trade at $1.2228.

The pound sat at $1.3308, 2 cents higher than the 10-day low hit on Monday, when it dropped 2.5% after countries shut down borders to Britain over the virus mutation.

The euro rose 1 cent from its Monday low of $1.2130. It gained 0.3% to 91.23 pence on the pound.

The dollar index climbed 0.2% to 90.259, a little below the 90.978 hit on Monday. The index is up 0.6% from the 2 ½-year low of 89.723 hit last week.

The Chinese yuan, which has gained 10% against the dollar since a March low, steadied at $6.5433.