TOKYO- The dollar was hemmed into a narrow range on Monday, as traders weighed the economic impact from a resurgence of global coronavirus cases against prospects for a working vaccine that could help reignite global growth.
Global markets surged last week after on vaccine optimism, with the dollar rising as traders quit their long-yen positions. But the currency market had turned risk averse towards the end of the week as global infections spread.
More than 54.01 million people have been reported to be infected by the novel coronavirus globally, with death toll exceeding 1.3 million, according to a Reuters tally.
Meanwhile, the total virus cases in the US surpassed 11 million on Sunday as the pace of the pandemic quickened.
Against a basket of currencies, the greenback was roughly near where it ended last week, fetching 92.68.
“Currency moves which were prompted by positive vaccine news have taken a pause. With no additional, positive news on the vaccine, US interest rates and stocks went into correction mode at the end of the week, and dollar/yen fell,” Masafumi Yamamoto, chief currency strategist at Mizuho Securities said.
“Over the weekend, uncertainty around the US presidential election has declined as it became more certain that Joe Biden secured more votes, and it’s easier for traders to take risks on hopes that the next administration would soon take measures against the coronavirus,” he said. The dollar could strengthen against the yen if US bonds and stocks maintain their upward moment, he added.
