The US dollar is the best performing currency among G10 currencies in January, with the dollar index rising 1.6% so far this month to hit a two-month high.

The dollar is the best performing currency among G10 currencies in January, with the dollar index rising 1.6% so far this month to hit a two-month high.

The yen and the Swiss franc, traditional safe-haven currencies, ranked a close second and third.

The yen firmed 0.1% to 108.90 yen per dollar, edging close to a three-week high of 108.73 touched last week.

The Japanese currency has fallen 0.3% against the dollar so far this month but risen against most others, adding 1.6% versus the euro and 3.9% on the Australian dollar.

The Swiss franc changed hands at 0.9729 franc per dollar, flat on the day and down 0.5% this month but hit a 32-month high against the euro earlier this week.

The euro stood at $1.1009, having touched a two-month low of $1.0992 in U.S. trade on Wednesday.

The offshore yuan dipped, trading at 6.9730 yuan per dollar , above the one-month low of 6.9900 touched on Monday. Markets in China will remain shut this week.

Chinese health authorities said there were 7,711 confirmed cases of infection as of the end of Wednesday, with the death toll rising to 170, an increase of 38 from the previous day.

In the United States, the latest economic data was mixed.

New orders for U.S.-made capital goods dropped by the most in eight months in December and shipments were weak, although consumer confidence surged to a five-month high.

U.S. bond prices gained, with the 10-year Treasuries yield falling to 3 1/2-month low of 1.569%, getting a boost from not only wariness about the coronavirus but also comments from Federal Reserve Jerome that were perceived to be dovish.

“Overall, the Fed seems keen to cut rates if needed while nothing in Powell’s comments pointed to a chance of a rate hike this year,” said Naoya Oshikubo, senior manager of research at Mitsui Sumitomo Trust Asset Management.

U.S. money markets are pricing in one rate cut by the third quarter, though the chance of a near-term move is seen slim.

Elsewhere, sterling traded unchanged at $1.3016 ahead of the Bank of England’s policy decision later in the day.

Though expectations of a rate cut have substantially dropped after some robust data last week, they still remain almost 50%, suggesting the rate decision is likely to move the pound whichever way the BoE goes.

The European Parliament gave final approval to Britain’s divorce from the European Union on Wednesday, paving the way for the country to quit the bloc on Friday after nearly half a century and delivering a major setback for European integration.