By Gina Lee

Investing.com – The dollar was up on Tuesday morning in Asia. Meanwhile, the yen traded near a one-month low to the U.S. currency as uncertainty about the omicron COVID-19 variant was largely consigned to the background, and investors’ risk appetite improved.

By 10:15 ET (03:15 GMT), the that monitors the greenback relative to other currencies increased by 0.02%, or 96.110 at 10:00 PM ET.

With the yen dropping to 114.935 against dollar, the pair climbed 0.06% to 112.90. This is the lowest level since Nov. 26. It also closes the year-to date low of 115.525 set on Nov. 24.

Japan reported that the grew 7.2% in November, which was higher than expected. The November figure also stated that the 1.15 was higher than the 2.8%.

The Australian dollar, which is more risky than the New Zealand and Australian currencies, fell 0.01% to 0.7234. It was close to the high of 3.01% it reached on Friday. While the Australian and New Zealand markets were closed, the pair dropped 0.01% each to 0.6807

The pair inched up 0.03% to 6.3722, with the People’s Bank of China reiterating on Monday that the yuan exchange rate will be more flexible in 2022 and will remain stable overall at a reasonable and balanced level.

It fell by 0.06%, to 1.3429.

The U.S. share market was on an uptrend, closing Monday at a new record high. The U.S. dollar, which has been a safe haven currency for the past few trading sessions, was close to the bottom of the range. This was despite the U.S. Federal Reserve’s hawkish tilt at the end of the month.

Markets worldwide are positive that the impact of omicron on economic recovery will not be detrimental to demand for haven currencies like the Japanese yen. Citigroup (NYSE) Osamu Tashima, Global Markets Japan chief of G10 FX strategy told Reuters.

According to him, the U.S. equity rally implies that investors are very cautious despite Fed tightening faster. He also predicted that the Japanese yen would test its 2021 lowest point in the short term.