· Currencies recover from Omicron chaos but analysts warn more volatility ahead
Currency markets calmed on Monday in Asia after the initial shock of the discovery of the Omicron coronavirus variant sent investors scurrying for cover last week, but analysts warned of more volatility with little still known about the new strain.
The risk-sensitive Australian dollar rose 0.37% to $0.7139, recovering after a 1% tumble on Friday that saw it dip to $0.71125 for the first time since Aug. 20.
The South African rand recovered from Friday's one-year low at 16.3675 per dollar, jumping 0.93% to 16.1400.
South Africa discovered the Omicron variant last week, and countries globally have been quick to tighten border controls with mutations in the spike protein suggesting it could be resistant to current vaccines
Despite the speed of the response, Omicron has since been detected in places including Australia, Britain, Canada, Germany and Hong Kong. read more
BioNTech said Friday it may know within two weeks if the vaccine it developed with Pfizer needs to be reworked.
The U.S. dollar index - which measures the currency against six major peers - traded at 96.204, after dipping to a one-week low of 95.973 on Friday.
While the dollar stands to benefit from the uncertainty because of its status as a safe haven, it clouds the outlook for when the Federal Reserve - and other global central banks - can raise interest rates.
The euro , which jumped 0.98% on Friday as traders closed out short positions, slipped 0.23% to $1.1290.
Sterling was about flat at $1.3335, off Friday's 11-month low at $1.3278.
Reference: Reuters
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