News of a new Covid-19 variant that is said to have the potential to cause a faster spread of Covid-19 has caused concern among market players. Market players are beginning to take precautions by investing in hedge currencies such as the Yen, Japan and the Swiss franc.
The yen and franc have posted gains, while the Australian and Norwegian currencies have lost demand following the U.S. Thanksgiving holiday on Thursday which left markets more volatile.
Knowledge of this new variant is still limited as it has only recently been detected in South Africa, Botswana and Hong Kong. However, scientists think that it can pose a threat to the body's immunity.
The yen has jumped from a five -year low to a weekly high against the US dollar with a strengthening of more than 1% to a high of 113.6.
Meanwhile the Euro jumped 0.7% to a high of $ 1.129 even as it almost fell to a 6-1/2-year low against the Swiss franc.
Britain has taken a proactive step by canceling flights to several countries by stating that the new variant is still unknown its true dangers.
The sterling slipped to a new 2021 low below $ 1.33 following turmoil in the market and some market players reduced their bets on an interest rate hike in December.
The US dollar index, which measures the US dollar against major currencies, declined 0.67% to a trading level of 96.225.
