Euro and other Currencies Recovered Against the Dollar

The Australian dollar, euro, and other currencies recovered against the greenback as traders turned more positive the economic outlook on Wednesday, even as Covid’s new variant cases jumped and investors braced for more volatility.

The euro added 0.1% to $1.13.

The Australian dollar dropped 0.4% to $0.7121 and the New Zealand dollar fell to $0.6742. However, both of them were up slightly by 11:15 GMT.

The British pound advanced 0.3% to $1.3316. The pound gained 0.3% in spite of data showing the country’s economy grew more slowly than previously thought in the late July-September period.

The dollar index dropped 0.1% to 96.317, though it was still well within its recent ranges.

Based on the information provided by analysts from ING, the weeks on either side of Christmas are usually low in volatility for currencies and other asset classes.

The omicron variant of Covid-19 continues to keep traders on edge while infections are multiplying across Europe and other regions. Some countries are considering new restrictions on movement. Meanwhile, Portugal also introduced measures to limit the spread of the omicron variant. It ordered bars and nightclubs to close from December 26.

Finland is also trying to cope with the pandemic. Bars, as well as restaurants in the country, will have to close at 22:00 on December 24.

Still, markets are growing confident the economic fallout from Covid’s new variant will be limited.

Dollar and lira

Lira was in a stable position and held its recent gains after a rollercoaster ride in which lira charged back from record lows. It recovered from record lows due to the country’s President Tayyip Erdogan’s new steps to protect Turks’ savings against volatility.

On Tuesday, the lira dropped 0.6%. The country’s currency was last down around 1.4% at 12.57 per dollar.