finance

Dollar Up as Omicron Fears Die Down



© Reuters.

By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia as concerns about the omicron COVID-19 variant started receding.

The that tracks the greenback against a basket of other currencies inched down 0.09% to 96.245 by 12:12 AM ET (5:12 AM GMT).

The pair edged up 0.19% to 113.68.

The pair was up 0.37% to 0.7075, with the keeping its interest rate unchanged at 0.10% earlier in the day. The pair edged up 0.19% to 0.6763.

The pair inched down 0.07% to 6.3712. Chinese data released earlier in the day showed that grew 22% year-on-year, and grew 31.7% year-on-year, in November. The was at $71.72 billion.

The pair edged up 0.15% to 1.3284.

“Although there is still a lot of uncertainty over Omicron’s health and economic impact, investors have embraced news from South Africa suggesting the exponential rise in Omicron infections has not been followed by a big wave in hospitalizations,” NAB strategist Rodrigo Catril told Reuters.

Ntsakisi Maluleke, a public health specialist in South Africa’s Gauteng province, said over the weekend that patients with omicron had only shown mild symptoms.

Meanwhile, China eased its monetary policy by cutting banks’ reserve requirements for the second time in 2021. The People’s Bank of China will reduce most banks’ reserve requirement ratio by 0.5 percentage points next week, releasing CNY1.2 trillion ($188.16 billion) of liquidity.

The Reserve Bank of India will hand down its policy decision on Wednesday. The , the , and the will all hand down their policy decisions in the following week.

Although the Reserve Bank of New Zealand hiked its to 0.75% in November, some investors said that the move was bad for growth.

“It does seem like the market is fatigued with the New Zealand good news story, and is less willing to reward currencies heading for higher interest rates,” ANZ Bank analysts said in a note.

“They normally signal strong growth, but in a supply-constrained world, higher rates may be a signal of slower growth to come. New Zealand’s top of the pile cash rate, and expectations of more interest rate hikes to come, certainly aren’t helping the New Zealand dollar.”

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