* Dollar falls from three-month highs as Treasury yields fall * Spread of Delta variant fuels concerns about global recovery * Euro also rises in response to dollar weakness as havens seek refuge
Kevin Buckland contributed to this article.
(Reuters) – TOKYO, July 9 (Reuters) – On Friday, the safe-haven yen and Swiss franc held their ground, while riskier currencies such as the Australian and New Zealand dollars fell to multi-month lows as investors grew wary of the global economic recovery.
Bonds have risen, while stocks have fallen around the world, amid growing fears that the fast-spreading Delta variant of COVID-19 could derail a recovery that is already showing signs of weakness.
Overnight, the benchmark US Treasury yield fell to a nearly five-month low of 1.25 percent, down from 1.5440 percent just two weeks ago.
The dollar index was left licking its wounds after a 0.36 percent drop on Thursday to 92.372, putting pressure on the US currency. It reached a three-month high of 92.8440 on Wednesday.
The euro benefited, maintaining a 0.45 percent gain over the previous day to trade at $1.1846.
The yen traded at 109.865 per dollar, maintaining its 0.8 percent gain from the previous session.
In a client note, Rodrigo Catril, a strategist at National Australia Bank, wrote, “There is certainly a wind of change in markets,” with concerns about inflation now shifting to concerns about growth.
“There hasn’t been a single catalyst for a change in sentiment; rather, it appears to be a cascade of events,” he said, citing the rapid spread of the Delta variant and fears that central bank tightening could stifle the recovery.
According to data released on Thursday, the number of Americans submitting new jobless claims increased unexpectedly last week, indicating that the labor market’s recovery from the COVID-19 outbreak is still turbulent.
The Swiss franc maintained its gains from Thursday, when it jumped more than 1% to 0.91540 per dollar.
The Australian dollar fell 0.1 percent to $0.74245 on Friday, following a 0.7 percent drop on Thursday, when it hit its lowest level since mid-December at $0.74170.
New Zealand’s kiwi remained unchanged at $0.69435, down more than 1% from the previous session.
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Currency bid prices at 0101 GMT Description RIC Last U.S. Close % Change YTD % High Bid Lowest Bidder
Changes Before
Session
Euro/Dollar $1.1839 $1.1845 -0.04 percent -3.10 percent +1.1850 +1.1839 Dollar/Yen 109.8800 109.7750 +0.08 percent +6.37 percent +109.9200 +109.8000 Euro/Yen EURJPY=EB 130.07 130.01 +0.05 percent +2.48 percent +130.1900 +129.9800 S> Euro/Yen 109.8800 109.7750 +0.08 percent +6.3
Dollar/Swiss +0.05% +3.48 percent +0.9155 +0.9148 +0.9155 +0.9148 +0.9155 +0.9148 +0.9155 +0.9148 +0.9155 +0.9148 +0.9155 +0.9148 +0.9
Sterling/Dollar 1.3784 1.3789 +1.3793 +1.3783 +1.3793 +1.3783 +1.3793 +1.3783 +1.3783 +1.3783 +1.3783 +1.3783 +1.37
Dollar/Canadian 1.2534 1.2532 +0.01% -1.58 percent +1.2547 +1.2529 +1.2547 +1.2529 +1.2547 +1.2529 +1.2547 +1.2529 +1.
NZ 0.6940 0.6946 -0.06 percent -3.33 percent +0.6953 +0.6939 Dollar/Dollar All places 0.7422 0.7432 -0.12 percent -3.51 percent +0.7439 +0.7421 Aussie/Dollar 0.7422 0.7432 -0.12 percent -3.51 percent +0.7439 +0.7421 NZ 0.6940 0.6946 -0.06 percent -3.33 percent +0.6953 +0.6939
Tokyo is located in Europe.
Volatilities
BOJ provides information on the Tokyo foreign exchange market.
(Kevin Buckland contributed reporting.)
Shri Navaratnam edited the piece.)/n
