Dollar benefits from Covid worries, bitcoin plunges – 11/21/2022 at 10:38 am

The dollar rose on Monday, buoyed by its safe haven status as hopes of an easing of containment measures in China were dampened by the country’s first Covid-19 death since May.

Around 9:25 a.m. GMT (10:25 a.m. in Paris), the greenback gained 0.79% to 1.0244 dollars for one euro.

China announced on Sunday its first death from Covid-19 since May, an 87-year-old man in Beijing where the rise in the number of cases is gradually leading to the closure of establishments and businesses.

Enough to revive fears that “new strict confinements will be imposed on Beijing even as the power considers a relaxation of restrictions in the longer term”, comments Jim Reid, analyst at Deutsche Bank.

The November 11 announcement of an easing of health policy had supported risky assets and, on the contrary, weighed on the dollar.

This week, the market will be watching minutes from the latest meetings of the two largest central banks, with minutes from the US Federal Reserve (Fed) on Wednesday and those from the European Central Bank (ECB) on Thursday.

On the cryptocurrency side, bitcoin took a nose dive (-3.7% to $16,026 from the previous day), approaching the lowest in two years reached on November 10 at $15,574.

“Bitcoin nears $15,000 threshold as fallout from FTX debacle weighs on cryptocurrency market,” analyst Neil Wilson said.

Bankrupt cryptocurrency exchange FTX owes about $3.1 billion to its 50 biggest creditors, according to a court document seen by AFP on Sunday.

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09:25 GMT 21:00 GMT


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