Picture used for illustrative purpose. File

Gulf Today Report

The dollar advanced on Tuesday following the announcement of a coronavirus vaccine, raising the hope of investors.

Pfizer Inc and BioNTech announced on Monday that the result of their clinical trial for COVID-19 vaccine has proven to be more than 90% effective.

The dollar jumped following that announcement. Analysts attributed the increment to investors ditching long positions in other major safe-haven currencies such as Japenese yen and the Swiss franc.

Neil Jones, head of FX sales for financial institutions at Mizuho, said he expected the risk-on moves to continue. 

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"I don’t think it’s over and don’t think the foreign exchange market will become completely sceptical," he said.

The dollar has lost around 1.4% this month as Joe Biden emerged the president-elect of the United States.

The Japanese yen inched above a little following the vaccine announcement but still relatively weak at 105.155 at 12:20 GMT.

Euro-dollar was flat at $1.1815.