Main Commodity-linked Currencies, on the Rise

Traders speculated that the Omicron variant would not be as bad as previously believed, causing the Dollar index to stabilize and currencies to rise, on Tuesday.

On the other hand, Asian equities have rallied on Monday night, while oil prices increased as risk appetite improved following reports, earlier this week from South Africa, that Omicron patients in the nation were exhibiting minor symptoms.

For its part, the Australian Dollar led the currency rise on Tuesday, rising 0.6% to $0.70915, after the Australian Central Bank meeting, extending its gains from Monday, when it has hit a seven-week high.

The Australian central bank did not make any policy changes but stated that Omicron is unlikely to stymie the recovery.

In turn, the New Zealand Dollar increased by 0.1% to $0.6764, while the British Pound remained unchanged, at $1.3257.

However, the Dollar index declined 0.2% to 96.363 Yen, while the latter fell 0.2% to 113,705 to the Dollar.

Expectations that the US Federal Reserve Board will tighten monetary policy faster than the European Central Bank, weighed on the Euro, which fell 0.2% to $1.1263.