USD strengthened against most of its major rivals in the European session on Monday, as increasing cases of the Omicron Covid-19 variant reignited concerns over the impact of the coronavirus on the global economic growth and bolstered demand for safe-haven assets.
The U.S. Dollar Index (DXY), measuring the U.S. currency's value relative to a basket of foreign currencies, increased 0.16% to 96.18.
The latest reports from around the world showed that the coronavirus cases continued to increase drastically, despite restrictions and vaccines efforts. In particular, China announced that daily new COVID-19 cases in the country on Sunday rose the most since April 2020. In recent days, several countries have reported record-breaking numbers of daily new coronavirus cases, including Britain, France, Italy, Canada, and Australia.
Meanwhile, Dr. Anthony Fauci, chief White House medical advisor, noted in Sunday’s interview with ABC News that studies show the Omicron variant is less severe but warned that high levels of new cases “might override a real diminution in severity”.
The growing number of coronavirus cases forced governments to impose tighter business and travel restrictions, heightening worries about the economic impact of the Omicron coronavirus variant.