US dollar rises as China asserts its strict Covid policy
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The US dollar is rising as China Covid concerns drive up secured buying.
Rising Covid 19 cases in China resulted in new restrictions, weighing on global investor sentiment.
The dollar was recovering somewhat after a sharp drop in recent weeks. A drop in the US inflation rate last month has fueled speculation that the US Federal Reserve will slow its rate hikes.
The Fed’s aggressive rate hikes in 2022 have pushed up bond yields, drawing money back into dollar-denominated assets.
The dollar was 0.5% higher against the Japanese yen at 141.07, its highest level since November 11. The euro was 0.62% lower against the US dollar, trading at $1.026.
During times of economic stress, the Chinese currency is regarded as a ‘safe haven.’
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