Dollar gains as new infections cast doubt on recovery

The dollar firmed, while risk currencies fell under pressure as investors doubted the economy would recover soon amid a surge in new coronavirus infections around the world.

As the United States posted record levels of fresh cases each day, the dollar held on to last week’s gains. Meanwhile, risk currencies Aussie and kiwi fell to the lowest levels in the ranges they traded in for weeks.

The dollar index steadied at 97.466. The Aussie stood at $0.6872 and the kiwi at $0.6420. 

The safe-haven yen traded at 108.18 on the dollar.

New social restrictions have been imposed in Beijing, Lisbon, and several U.S. states as cases continued to rise. The death toll from the coronavirus pandemic has climbed to half a million, with a quarter of the number reported in the United States.

Elsewhere, the pound sat at $1.2341, while the euro is expected to hold its momentum against the dollar.