Dollar Edges Up, Currency Markets Still Upbeat After Vaccine News

  • The dollar edged up on Tuesday and the yen stayed low, as investors remained optimistic about progress towards a COVID-19 vaccine, although the moves were more tempered than in the previous session.
  • U.S drugmaker Pfizer Inc and German partner BioNTech SE said on Monday a large-scale clinical trial showed their vaccine was more than 90% effective in preventing COVID-19 - news that lifted global markets with a wave of risk appetite, which subsided somewhat overnight before re-igniting on Tuesday.
  • The dollar rose after the announcement. Although the dollar is a safe-haven, and so typically falls on positive news, analysts said the move was caused by investors quitting long positions in other major safe-haven currencies such as the Japanese yen and the Swiss franc.

(Source: Reuters)