The dollar sat near its highest levels in months on Monday as the spread of the Delta coronavirus variant made investors nervous about the global recovery and sent money into safety.
Oil prices fell more than $1 a barrel on Monday, after the OPEC+ group of producers overcame internal divisions and agreed to boost output, sparking some concerns about a crude surplus as COVID-19 infections continue to rise in many countries.
Asian shares slipped to a one-week low on Monday and perceived safe haven assets, including the yen and gold, edged higher amid fears of rising inflation and a surge in coronavirus cases, while oil prices fell on oversupply worries.
Oil headed for the biggest weekly decline since mid-March as a resurgence of Covid-19 in some parts of the world and uncertainty around the prospect for an OPEC+ deal to boost supply clouded the short-term outlook.
Gold was down on Friday morning in Asia but was headed for a fourth consecutive weekly gain. The yellow metal was boosted by U.S. Federal Reserve Chairman Jerome Powell’s insistence that any inflation will be transitory and that the central bank would continue to support the economy.
The dollar headed on Friday for its best weekly gain in about a month, supported by buying on investor worries about quicker U.S. interest rate increases and by rising virus infections, while a hot inflation reading lifted the New Zealand dollar.