U.S. dollar rises to three-month high as safety bid continues

dollar safety bid growth believe
Middle East

U.S. dollar rises to three-month high as safety bid continues

NEW YORK/LONDON- The U.S. dollar climbed to a three-month peak on Tuesday in a flight-to-safety bid, as investors remained anxious about a fast-spreading coronavirus variant that could throttle global growth. Commodity currencies tied to risk appetite such as the Australian, New Zealand and Canadian dollars struggled, with investors opting for safety or staying on the sidelines in the midst of renewed fears about the highly contagious Delta variant, now the dominant coronavirus strain worldwide. The United States, for instance, has seen a surge in infections, especially in areas where vaccinations have lagged. The gains in the dollar come at a time when yield differentials have moved against it. Benchmark 10-year U.S. Treasury yields dipped to a five-month low below 1.20% on Monday. "Many believe the very best of the recovery has already passed us and what is even worse, the medical concern that seemed to be fading away, seems to be returning with a vengeance," said Juan Perez, FX strategist and trader at Tempus Inc in Washington. "I believe the safe-haven strengthening is merited, considering that global progress has been anaemic to what it appeared like in Q1 so now all valuations and high expectations for growth are being rightly