OTTAWA- Currency markets calmed on Monday in Asia after the initial shock of the discovery of the Omicron coronavirus variant sent investors scurrying for cover last week, but analysts warned of more volatility with little still known about the new strain.
The risk-sensitive Australian dollar rose 0.37 percent to $0.7139, recovering after a 1 percent tumble on Friday that saw it dip to $0.71125 for the first time since Aug. 20.
The Canadian dollar also rebounded, with the greenback sliding 0.57 percent to C$1.2726, off the previous session’s two-month high at C$1.2800.
The safe-haven yen, which had been the biggest beneficiary of the flight to quality, slipped 0.25 percent to 113.75 per dollar. The Japanese currency surged as much as 2 percent at one point on Friday to 113.05.
The South African rand recovered from Friday’s one-year low at 16.3675 per dollar, jumping 0.93 percent to 16.1400.
South Africa discovered the Omicron variant last week, and countries globally have been quick to tighten border controls with mutations in the spike protein suggesting it could be resistant to current vaccines.
Despite the speed of the response, Omicron has since been detected in places including Australia, Britain, Canada, Germany and Hong Kong.
BioNTech said Friday it may know within two weeks if the vaccine it developed with Pfizer needs to be reworked.
