Dollar falls; yen and Swiss franc gain in post-Omicron gyrations

Dollar falls; yen and Swiss franc gain in post-Omicron gyrations

The US dollar fell on Wednesday morning in trading that saw the safe-haven yen and Swiss franc appreciate even as the risk-on British and Australian currencies rebounded from lows the day before.

The moves underlined the fragility of the calm that seemed to have settled over the foreign exchange markets earlier in the day.

Traders are weighing what the new Omicron variant of the coronavirus might do to plans that Federal Reserve Chair Jerome Powell signaled on Tuesday to move more quickly to raise US interest rates.

The dollar index, which measures the greenback against major currencies was down 0.3% on the day at 95.682 at 10:07 ET (1507 GMT), losing a similar amount to the Japanese yen and falling 0.1% against the Swiss franc.

The British pound, often considered a risk-on currency, was up nearly 0.4% at $1.3344. The pound on Tuesday had been knocked to its lowest level…

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