By Gina Lee

Investing.com – The dollar was up on Monday morning in Asia, remaining near a 16-month high against the euro. Investors shifted to the U.S. currency as a safe haven due to concerns about the increasing number of COVID-19-related cases in Europe.

By 10:37 ET (03:37 GMT), the that monitors the greenback against other currencies edged up 0.1% to 96.175 This was close to the 96.266 record that it reached during the week before.

This pair edged up 0.1% to 114.18.

While the pair increased 0.10%, it fell 0.6988. It will announce its policy on Wednesday.

Both the pair fell 0.03% at 6.3845, and the pair dropped 0.15% at 1.3432.

The U.S. currency was also supported by bullish remarks from U.S. Federal Reserve officers. On Friday, Richard Clarida, Fed Vice Chairman and Governor Christopher Waller suggested that asset tapering might be more appropriate in times of economic recovery and rising inflation. Also, this could mean faster interest rate rises.

Euro fell 0.2% to $1.1274, “EUR-USD has been in free-fall and will likely get the lion’s share of attention from clients looking for a play on growing restrictions and tensions across Europe,” Pepperstone head of research Chris Weston said a note.

The short EUR continues to be attractive for tactical traders and momentum followers.

That begins Monday because of the increasing number COVID-19 case numbers. Jens Spahn, the German Health Minister, called it a national emergency and said that vaccines will not be able to reduce this situation.

The Australian dollar, which is more risky than the US dollar, fell as low as $0.72285, just a few days before its Oct. 6 low. “We expect AUD to remain heavy in the near‑term, and a dip to $0.70 is possible,” with the economic recovery in China slowing down and the Reserve Bank of Australia’s dovish policy stance dragging on the currency, Commonwealth Bank of Australia (OTC:) strategist Joseph Capurso said in a report.

According to the report, the USD can continue its recent rally this weekend and make a new 2021 high… A strong U.S. inflation round can drive market prices for Fed rate rises and USD.”