[ad_1]
SINGAPORE: The dollar jumped and the safe-haven yen hit its highest level of the week on Friday after US President Donald Trump said he tested positive for Covid-19 and went into quarantine.
The news could spark a new wave of volatility in the market as investors prepare for the tight November presidential election.
The dollar was up 0.5% against risk-sensitive Australian and New Zealand dollars, while the yen rose about 0.3% to 105.27 per dollar, its highest level since Monday.
The euro fell 0.3% to $ 1.1716.
The yen made even higher gains against other currencies, amid a broad shift in riskier assets and commodities. Volumes in Asia were relieved by the China holiday.
Trump said on Twitter that he and his wife Melania tested positive for the coronavirus and would be quarantined.
Analysts said this could change the campaign, but that the medium-term implications for the currencies were not immediately clear.
“It has the potential to reduce Trump’s campaign capacity,” said Sean Callow of Westpac.
“It also hurts him in terms of the whole narrative that there really isn’t much to worry about – it puts the Covid crisis itself front and center … But does it change the polls? I do not know “.
The Australian dollar last stood at $ 0.7144 and the kiwi at $ 0.6629. Against a basket of six major currencies, the dollar was up 0.2% to 93.899.
Investors had already been nervous about signs that the long-awaited US fiscal stimulus package was stalled in Washington, and after a flood of data, including unemployment claims and consumer spending, suggested that the slow US economic recovery it could be losing steam.
“What this says is that the risk of the virus rebounding is still quite real,” said Moh Siong Sim, a currency analyst at the Bank of Singapore. “The infection rate in the United States is no longer dropping. This reminds people that the virus still exists. “
