Dollar Hits 9-Month High While Kiwi and Aussie Wilt
The dollar rose against major odds and hit its 9-month high on Monday. The currency reached a 93.734 dollar index for the first time since November 4th. On the other hand, AUD languished after concerns regarding the pandemic started emerging.
ON FRIDAY, the USD hit the 93.468 indexes and grew a bit to hit its 9-month high on August 23rd. After an increase in the number of infected individuals, the Federal Reserve moved its annual Jackson Hole to an online format. The event will take place on Friday, questioning the Federal Reserve’s wide assessment of the predicted health outbreak.
Jerome Powell, Fed Chair, has downplayed chiefly the repercussions of the Delta variant. However, the Chair is also set to give a speech on the upcoming event.
The price of the dollar has also been affected by the speculations regarding the Federal Reserve easing up its asset buyback policy. However, a delay can hinder the currency’s performance, as per NAB (National Australia Bank.)
According to Ray Attrill, National Australia Bank’s Head of Currency Strategy stated the situation is a double-edged sword and can hinder the dollar’s performance too. Increasing restrictions and infections in New Zealand and Australia are already hurting the currencies. Calling anything regarding the move is immature, according to Attrill.
The AUD rose 0.1 higher, reaching 0.7145 dollars. However, it remained close to Friday’s 9-month low of 0.71065 dollars. Almost 60% of the Australian population of 25 million is currently quarantined. New Zealand Kiwi dipped 0.09% to reach 0.6834 dollars, nearing the 9-month record of 0.6807 dollars.
The Delta variant has majorly affected the Asia-Pacific, with vaccinations losing to places like Britain and the United States. Apart from New Zealand and Australia, Vietnam and South Korea have tightened or extended restrictions. Japan has also shifted its strategy after its number of infections increased by 3x. However, with the Delta variant set to arrive, the market is still set to fluctuate.