Dollar gains as investors rush for safe havens due to virus worries

The dollar rose on Wednesday as the market turned to safe-havens, reversing risk currency gains after investors hoped the crisis in Europe and New York was slowing down.

The dollar gained against major currencies except for the safe-haven yen, a day after its steepest fall against a basket of currencies in almost two weeks.

Safe-haven gains rushed in morning trade after Asia’s equity markets ended the two-day rally. Bonds and gold steadied.

The U.S. dollar gained 0.5% on both Australian and New Zealand dollars. The risk currencies traded at $0.6142 and $0.5951, respectively.

The dollar slipped 0.1%, at 108.55 against the yen. It also gained against the pound at $1.2321 and against the euro at $1.0878.

The New York state reported 731 new coronavirus deaths overnight, its biggest daily toll. Spain’s death toll increased for the first time in five days, but officials were prompt to lift some restriction measures soon.

In Britain, Prime Minister Boris Johnson is in intensive care after persistent coronavirus symptoms. 

Against Asian currencies, the dollar climbed 0.5% against the Korean won and ended a three-week low against the Chinese yuan after gaining 0.1%, at $7.0730.

As lockdowns lift in Wuhan, China, investors closely watch markets to determine how the global economy would fare in the coming weeks.

Chinese officials are working on lifting restrictions without risking another wave of infections.