The U.S. dollar is rallying against other major currencies as a growing number of COVID-19 outbreaks in China has investors fleeing to the safety of the greenback.
Three COVID-19 deaths were reported in China over the weekend, and Beijing is urging residents to stay at home today (November 21).
The new cases have cast doubt on hopes that China’s government will ease its tough “Zero COVID” restrictions.
The concerns coming out of China have boosted the U.S. dollar, which is seen as a safe haven in times of global financial stress.
The dollar rose 0.98% against Japan's yen to 141.75, its highest level since November 11. The Euro currency dropped 0.83% against the U.S. dollar to trade at $1.024.
The Canadian dollar is currently trading at $1.34 against the U.S. currency.
The greenback, as the U.S. dollar is known, is rebounding after a sharp fall in recent weeks.
The dollar index, which tracks the currency against its major peers, has slid more than 6% from a 20-year high in October.
A decline in the U.S. inflation rate last month has increased expectations that the U.S. Federal Reserve will slow its pace of future interest rate hikes.
Despite its recent pullback, the U.S. dollar index remains up 12% on the year.
