* Dollar rises amid concern over COVID-19 impact on economy * Aussie, New Zealand dollars fall sharply * Investors cautious but trading calmer than Thursday * Graphic: World FX rates https://tmsnrt.rs/2RBWI5E (Adds new comment, FX table, updates prices) By Gertrude Chavez-Dreyfuss and Tommy Wilkes NEW YORK/LONDON, Aug 20 (Reuters) – The safe-haven U.S. dollar touched a fresh 9-1/2-month high on Friday, before stabilising, bolstered by concerns that the Delta coronavirus variant could derail global economic recovery just as central banks begin to reverse pandemic-era stimulus. While moves in currency markets were much more contained than on Thursday as equity markets steadied, the risk-sensitive Australian and New Zealand dollars fell sharply again. The dollar index, which measures the U.S. currency against six rivals, rose to as high as 93.734 for the first time since early November, before trading flat at 93.589. For the week it was on track to gain about 1.2%, the most in two months. “Investors are heading to safety, which has been the primary catalyst why Treasury yields are low. When you look across the impact that these growth concerns are having, they’re really pummelling commodity currencies,” said Edward Moya, senior market analyst at FX online broker OANDA. “The market cannot get past these Delta variant concerns. The reopening and return to normal in the U.S. have been constantly pushed back a few months and that’s not a great story for the emerging world,” he added. Minutes of the Fed’s July meeting, released on Wednesday, showed officials largely expect to reduce their monthly bond buying later this year. The Australian dollar sank to a new 9 1/2-month low of US$0.7107, and was little changed at US$0.7145, down 0.5%, putting it on track for its worst weekly performance since September 2020, as a COVID-19 lockdown on Sydney was extended by a month. New Zealand’s Kiwi dollar dipped to a new nine-month trough of US$0.6807 at one point. It last traded up 0.1% at US$0.6833. The government on Friday extended a snap COVID-19 lockdown that delayed the central bank raising interest rates this week. The Canadian dollar dropped to an eight-month low of C$1.2948 per U.S. dollar and was last at C$1.2865, down 0.3% against its U.S. counterpart as oil prices fell further because of worries about the global economy. Norway’s crown dropped for a second day as weaker oil prices and general nervousness among investors hit the currency despite the Norwegian central bank on Thursday sticking to its plan for a September interest rate hike. The euro was last up 0.1% at 10.561 crowns. The euro was little changed at $1.1677, but still near the 9-1/2-month low of $1.1665 reached overnight. It is down nearly 1% this week, the most since mid-June. Against the yen, another safe-haven currency, the dollar firmed 0.1% to 109.825 yen. Sterling slipped to one-month…
Read More: FOREX-Dollar hits new 9-1/2-month high as investors head for safety