Dollar, yen rise as Trump tests positive for COVID-19

The dollar surged and the yen hit its highest level of the week on Friday after U.S. President Donald Trump said he tested positive for COVID-19.

The news could prompt a new wave of volatility in the market as investors await the presidential election in November.

The dollar climbed 0.5% against the risk-sensitive Aussie and kiwi. The Aussie stood at $0.7144 and the kiwi at $0.6629. The safe-haven yen rose 0.3% to 105.27 on the dollar, its highest since Monday.

The yen rose sharply against other currencies amid a broad risk-off sentiment in the market. 

In a tweet, Trump stated that he and first lady Melania Trump tested positive for the virus and entered quarantine.

Analysts said this could upend the election campaign, but its implications on the currency market were unclear.

Investors were already tense on signs that the U.S. fiscal stimulus was stalled in Washington. 

Data on unemployment claims and consumer spending also fueled speculation that U.S. economic recovery was stalling. 

The euro slid 0.3% to $1.1716. The dollar index was up 0.2% to 93.899.