U.S. Dollar Spikes Up Amid China COVID Concerns

The U.S. dollar appreciated against its major counterparts on Monday, as rising virus cases in China and fresh restrictions triggered risk aversion.

Investors are worried about further lockdowns in China after Beijing reported three Covid-19 deaths over the weekend.

Chinese authorities told residents in Beijing's most populous district to remain at home to contain the Covid-19 outbreak and the country's southern metropolis of Guangzhou has been placed under a lockdown for five days.

Investors awaited the minutes of the Federal Reserve's latest policy meeting for more signals on the rate outlook.

The dollar index that tracks the greenback against a basket of other currencies reached a 10-day high of 107.60.

The greenback touched 1.3426 against the loonie, its highest level in nearly two weeks. If the greenback rises further, 1.36 is seen as its next resistance level.

The greenback was up at 1.1807 against the pound. On the upside, 1.15 is possibly seen as its next resistance level.

The greenback edged up to 0.6120 against the kiwi, from a low of 0.6169 set at 6:50 pm ET. Next key resistance for the greenback is possibly located near the 0.59 level.

The greenback appreciated to 10-day highs of 0.9575 against the franc and 140.99 against the yen, off its early lows of 0.9530 and 140.16, respectively. The next possible resistance for the greenback is seen around 0.99 against the franc and 145.00 against the yen.

The greenback firmed to 10-day highs of 1.0250 against the euro and 0.6632 against the aussie, after falling to 1.0333 and 0.6684, respectively in early trades. The greenback is likely to target resistance around 0.99 against the euro and 0.63 against the aussie.