Dollar holds safe-haven bid amid virus resurgence

The dollar firmed on Friday as investors cautioned against a surge in new coronavirus cases amid re-opening economies, strengthening the demand for safe-haven currencies. 

The dollar index traded at 97.360.

The dollar rose 0.5% overnight to 107.09 on the yen. The euro slid to $1.1223, while the pound fell to $1.2422.

Also supporting the dollar was the rise in corporate demand despite the wide risk sentiment in global equity markets. 

The U.S. health crisis worsened as fresh daily cases rose around the country. The governor of Texas has postponed the state’s reopening due to the rising infections.

Thursday’s data showed that U.S. unemployment is increasing due to forced layoffs amid weak demand. Claims for state unemployment benefits rose to 1.48 million for the week ended June 20.

Elsewhere, the Aussie stood at $0.6888. The Turkish lira was flat, while the Mexican peso sat on a one-month low.