Dollar Benefits From Covid Fears, Bitcoin Falls

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

Around 09:25 GMT (10:25 am in Paris), the dollar gained 0.79% to $1.0244 per euro.

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

Enough to resurrect fears that “strong new restrictions will be imposed on Beijing, even as the authorities consider easing restrictions in the long term,” said Jim Reid, an analyst at Deutsche Bank.

The November 11 announcement of a health policy easing supported risky assets and, conversely, put pressure on the dollar.

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

In terms of cryptocurrencies, Bitcoin fell sharply (-3.7% to $16,026 from the previous day), approaching a two-year low hit on November 10 at $15,574.

“Bitcoin is approaching the $15,000 threshold as the fallout from the FTX debacle impacts the crypto market,” said analyst Neil Wilson.

Bankrupt cryptocurrency exchange FTX owes about $3.1 billion to its top 50 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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