Delta variant concerns boosts dollar demand

The US dollar and other safe-haven currencies gain as Covid case counts increase in some geographies from the Delta variant

Investors are buying US dollars for a second day causing the Greenback to outperform relative to all G-10 peers.  Quarter-end flows contributed to some of the dollar rally as did the closing of some speculative positions in front of Friday’s Non-Farm Payroll numbers.  The more risk-sensitive Australian and New Zealand dollars are seeing larger losses as is the Norwegian krone. 

“One idea alone is a tactic, but if it can be executed a number of different ways, it becomes a great strategy”

Marc Benioff
  • FX Rates
    June 29, 2021

    Rates are not real time. Rates are today's indicative mid-market rates as of time of publishing, which may vary. Please contact SVB for a current quote.


  • USD

    The dollar is rallying on risk-off sentiment caused by the rise in the Delta variant cases around the world.  Quarter-end flows are also favoring the dollar as is the practice of closing some speculative positions in front of the release of Friday’s Non-Farm Payroll data.

    House price data for the 20 largest cities in the US came in as expected at +14.9% in April.

    The Conference Board’s index on Consumer Confidence for June is to be released later this morning.

    GBP

    The British pound is heading toward its 4th consecutive day of losses as concerns of the Delta variant spreading in the UK cause investors to sell the pound. 

    EUR

    The euro is weaker vs. the US dollar on month-end flows and overall dollar bullishness.  German inflation data for June (+2.3%) was in line with expectations (+2.4%).

    CAD

    The Canadian dollar lost some ground to the US dollar on overall US dollar strength.  Canadian GDP data for April to be released tomorrow.

    Brent continued its decline and investors believe OPEC+ will increase supply this week after reports Russia will not be speaking with Saudi Arabia prior to the OPEC meeting.

    ASIA/PACIFIC

    The Australian dollar is hovering just above 0.75 to the US dollar.  Almost half of the Australian population – about 12million people – are now in lockdown after Brisbane decides to restrict movement to prevent the spread of the Delta variant.

    The Indian rupee weakened on fiscal concerns after the central government announced additional spending to fight the pandemic.

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Peter Compton
WRITTEN BY
Peter Compton

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