Kevin Buckland

OTTAWA (Reuters), Currency markets eased in Asia on Monday following the shock that Omicron coronavirus variant discovery sent investors running for cover. But analysts cautioned of increased volatility since little information is still available about the strain.

After a tumble of 1% on Friday, the risk-sensitive Australian Dollar rose 0.3% to $0.7139. It then recovered to $0.71125 for its first time since August 20th.

Canadian dollars also recovered, falling 0.57% at C$1.2726, a drop of 1.2800 from the previous session.

The safe-haven currency yen was the largest beneficiary of the flight towards quality’s fall by 0.25%, to 113.75 dollars. On Friday, the Japanese currency surged up to 2% to 113.05.

South African rand rebounded from Friday’s low of 16.3675 dollars per year, rising 0.93% to 16.1400

South Africa found the Omicron variant and nations around the world have taken swift action to increase border security.

Omicron was detected worldwide, including Australia, Canada, Germany, Australia and Hong Kong.

BioNTech stated Friday that it could know in two weeks whether the vaccine it created with is available. Pfizer Rework is needed for (NYSE:).

Rodrigo Catril of National Australia Bank (OTC) stated in a client letter that “market volatility is likely to continue elevated” until then. “Markets were forced to revise the outlook for global growth until they know more.”

Joseph Capurso (OTC:) said that currencies will be volatile in the coming week. It won’t take Omicron news to bring AUD down below $0.7000.

Joe Biden, the President of the USA will update the nation on Monday about the U.S. reaction to the latest variant.

After falling to 95.973 Friday, the – which measures currency against six main peers – was trading at 96.204.

The uncertainty is good for the dollar because it’s a safe haven. However, the uncertain outlook can cloud the future of when the Federal Reserve and other central banks around the world will raise interest rates.

As traders close short positions on Friday, the euro jumped by 0.98% to $1.1290.

At $1.3335, Sterling was flat, compared to Friday’s 11 month low of $1.3278.