Dollar rises as Fed taper timeline remains uncertain
The dollar extended its gain on Monday morning in Asia. Investors expressed doubts on the start of the United States’ Federal Reserve’s asset tapering due to the rising cases of COVID-19 infections globally.
The U.S. Dollar Index that measures the greenback against other major currencies tallied an increase of 0.10% to 92.668 by 10:43 PM ET (2:43 AM GMT).
The USD/JPY pair gained 0.02% to 109.95.
The AUD/USD pair rose 0.05% to 0.7359, while the NZD/USD pair declined 0.07% to 0.7108.
The USD/CNY pair climbed 0.15% to 6.4534 in overseas trade, and the GBP/USD pair inched down 0.02% to 1.3836.
The National Australia Bank’s senior currency strategist Rodrigo Catril said the gains were attributed to investors’ risk aversion even as areas with high inoculation rate like Singapore and United Kingdom recorded surges in COVID-19 infections.
Economic recovery disruptions and the Fed’s continuous signals on asset tapering also made the greenback more favorable for investors, Catril added.