U.S. Dollar Recovers From Early Weakness On First U.S. Omicron Case

The value of the U.S. dollar moved to the downside in morning trading on Wednesday but has rebounded as the day has progressed.

Currently, the U.S. dollar index is trading at 96.07 points, up 0.1 percent, after falling as low as 95.67 earlier in the day.

The greenback is trading at 112.80 yen compared to the 113.17 yen it fetched at the close of New York trading on Tuesday. Against the euro, the dollar is trading at $1.1315 compared to yesterday's $1.1338.

The dollar benefited from its appeal as a safe haven after the Center for Disease Control and Prevention revealed the first confirmed case of Covid-19 caused by the new Omicron variant has been detected in the U.S.

The CDC said the first confirmed omicron case was detected in an individual in California, who returned from South Africa on November 22, 2021.

"The individual, who was fully vaccinated and had mild symptoms that are improving, is self-quarantining and has been since testing positive," the CDC said. "All close contacts have been contacted and have tested negative."

On the U.S. economic front, a report released by payroll processor ADP showed private sector employment increased by slightly more than expected in the month of November.

ADP said private sector employment shot up by 534,000 jobs in November after surging by a revised 570,000 jobs in October.

Economists had expected private sector employment to jump by about 525,000 jobs compared to the addition of 571,000 jobs originally reported for the previous month.

ADP chief economist Nela Richardson noted, "It's too early to tell if the Omicron variant could potentially slow the jobs recovery in coming months."

The Institute for Supply Management released a separate report showing manufacturing activity grew at a slightly faster rate in the month of November.

The ISM said its manufacturing PMI crept up to 61.1 in November from 60.8 in October, with a reading above 50 indicating growth in the sector. Economists had expected the index to inch up to 61.0.

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