Kevin Buckland

TOKYO (Reuters – Thursday’s safe-haven currency fell nearly one week to its major peers as investors took a more optimistic view of the global economic outlook despite Omicron coronavirus spreading rapidly.

The against 6 rival currencies indices stood at 96.111. It was not far off the overnight low of 96.020 that was reached for the first times since Dec. 17.

Following Wednesday’s 0.86% increase, the Australian dollar which is risk sensitive was at 0.72125.

After a rally of 0.63%, Sterling was unchanged at $1.33515

After Monday’s turmoil caused by restrictions placed on Omicron spread by the government, markets have shown a reversal in their risk appetite.

On Wednesday, however, U.S. consumer sentiment improved more than anticipated in December. It suggests that the U.S. will see continued economic growth in 2022 despite an increase in COVID-19-related infections and decreased stimulus spending.

Another encouraging report came from South Africa, where Omicron was found to have a reduced risk of serious illness in patients infected by the Delta strain.

After a overnight advance of 0.33%, the euro was flat at $1.13325

The dollar was unchanged at 114.16yen. This safe-haven currency is close to its one-month peak of Wednesday’s 114.37.

Many analysts believe the dollar will rise in the coming months, after the Federal Reserve’s hawkish move in March. The Federal Reserve offered an interest rate increase for March, which set it apart from its moredovish counterparts in Europe, Japan and Australia.

The March policy meeting is expected to see a price increase of 50-50 percent in the money markets.

“Ongoing Data Strength should Help Boost Fed Pricing, Particularly amid Reports that Omicron seems to be leading to fewer Hospitalisations,” TD Securities strategists said in a report.