Dollar backs off 16-month high on fears over new Covid variant

The US dollar fell against a basket of currencies on Friday, deepening losses for the second straight day, and pulled back further from a 16-month peak due to profit-taking and after the emergence of a new Covid-19 variant that renewed concerns over global economies closing.

The dollar index fell 0.6% to 96.20 points, after opening at 96.72 points, and hit a high at 96.77 points.

The index fell 0.1% yesterday, the first daily loss in 5 days, due to profit-taking from a 16-month peak of 96.94 points.

Scientists confirmed that the variant may lead to further spreading of the coronavirus, according to the Independent newspaper.

Scientists said that the new variant has 32 mutations in the spike protein, which would help it escape more easily from the human immune system and spread quickly.

These negative news renewed concerns over global economies closing, which threatens any improvements in economic activities in the recent period, which will might force central banks to delay any plans to tighten monetary policies.