NEW YORK- The dollar rose on Friday as traders retreated from riskier currencies amid talk of interest rate hikes by central bankers and concerns about the spread of Omicron cases.
The dollar indexagainst major currencies rose 0.7 percent, recouping all of the value it had lost on Thursday following a series of central bank policy statements.
The euro and British pound fell 0.8 percent and 0.6 percent, respectively, after having booked gains the two previous days. The euro stood at $1.1239 and the pound at $1.3236.
Commodity-linked currencies, including the Australian and Canadian dollars, also lost value as crude oil prices fell 2 percent on worries that Omicron variant will dampen demand.
The Aussie fell 0.8 percent to $0.7124.
The Canadian dollar traded 1 percent lower at 1.2895, or 77.54 US cents, in its biggest decline since Nov. 26.
The dollar was flat against the Japanese yen.
The risk of reinfection with the Omicron coronavirus variant is more than five times higher than the Delta variant and has shown no sign of being milder, a new study from England showed. The findings were released as European countries weigh further travel and social restrictions.
In the United States, Federal Reserve Governor Chris Waller said an interest rate increase will likely be warranted “shortly after” the Fed ends its bond purchases in March.
