The U.S. dollar is strengthening against the euro and the pound sterling in trading on Monday, becoming cheaper in pair with the yen.
The yuan exchange rate is declining amid the ongoing protests in China against covid restrictions.
The situation in China led to a decrease in appetite for risk in world markets that supports the dollar and yen, which are considered as “safe haven” currencies.
According to Bloomberg, protests were held in cities across the country, including the capital Beijing, as well as Shanghai, Xinjiang and Wuhan, which was originally the epicenter of the spread of COVID-19.
The ICE-calculated index showing the dynamics of the dollar against six currencies (euro, Swiss franc, yen, Canadian dollar, pound sterling and Swedish krona) added 0.39% on Monday, while the broader WSJ Dollar Index gained 0.25%.
The euro/dollar pair is trading at $1.0354 as of 7:55 a.m. Ksk, up from $1.0400 at the close of the previous session. The pound fell to $1.2050, compared to $1.2094 at Friday’s close.
The dollar fell to 138.44 yen against 139.19 yen at the close of the previous session. The euro slid down to 143.28 yen from 144.75 yen.
The U.S. currency pair with the yuan rose to 7.2053 yuan against 7.1654 yuan on Friday. The value of the dollar against the offshore yuan (traded in Hong Kong) rose to 7.2249 yuan from 7.1920 yuan.
