NEW YORK: Increased risk appetite buoyed trade-related currencies amid more optimism for the world economy on Monday after Joe Biden clinched the US presidency and Pfizer Inc said its experimental vaccine was more than 90% effective in preventing Covid-19.
The Japanese yen and Scandinavian currencies were among the biggest movers, while the offshore Chinese yuan hit its strongest in 28 months.
The safe-haven yen gave way to the new optimism, weakening to its lowest level in more than two weeks, while the yuan strengthened on confidence in more trade.
A Biden presidency is expected to shore up international trade relations and the prospect of a successful coronavirus vaccine is seen as a major tailwind, with global cases continuing to rise.
The Swedish crown rose to a 28-month high against the dollar and the euro. It traded at 8.6014 versus the US dollar and reached a 22-month high against the euro.
Its Norwegian counterpart strengthened 1.54% against the dollar and rose against the euro as well, to touch two-month highs against each.
The Australian dollar was up 2.5% at 76.94 against the Japanese yen, a seven-week high. The yen also fell 1.6% against the US dollar to 105.
The offshore Chinese yuan was not far behind, hitting a peak of 6.5501 against the dollar and last up 0.12% at 6.6012.
The Canadian and Australian dollars both rose as much as 0.8% versus the US dollar, with the latter hitting a seven-week high and the former a nine-month high.
Amid those changes, the dollar stabilised against a basket of currencies, having touched a 10-week low of 92.12, and was last up 0.4% at 92.561.
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