Left Menu
Development News Edition

FOREX-Dollar on defensive as markets pin hopes on global economic recovery

Reuters | Updated: 02-06-2020 06:46 IST | Created: 02-06-2020 06:46 IST
FOREX-Dollar on defensive as markets pin hopes on global economic recovery

The dollar was on the defensive on Tuesday as investors stuck to hopes of a global economic recovery despite heightened concerns over U.S.-China tensions and mass protests in many U.S. cities over the death of a black man in police custody. The U.S. dollar's index against a basket of six major currencies stood at its weakest level since mid-March, at 97.790.

The euro fetched $1.11295, little changed so far on Tuesday but holding near a 2-1/2-month high of $1.1154 touched on Monday. Sterling traded at $1.2491, having hit a one-month high of $1.2506.

U.S. manufacturing activity eased off an 11-year low in May and although the reading was weaker than forecast, it fit into markets' expectations that the worst of the economic downturn was behind as businesses reopen. "There are some potential flash points such as U.S. demonstrations and China-U.S. tensions. But, on the whole, the market is still moderately risk-on," said Kyosuke Suzuki, director of forex at Societe Generale.

Against the safe-haven yen, the dollar was at 107.57 yen , stuck in a well-worn range between 106 and 108 over the last several weeks. President Donald Trump said on Monday he was deploying thousands of heavily armed soldiers and law enforcement to halt violence in the U.S. capital and vowed to do the same in other cities if mayors and governors fail to regain control of the streets.

The protests erupted over the death of George Floyd, a 46-year-old African-American who died in Minneapolis police custody after being pinned beneath a white officer's knee for nearly nine minutes. Market risk sentiment was hurt only slightly on Monday when Bloomberg reported that China had told state-owned firms to halt purchases of soybeans and pork from the United States, raising concerns that the trade deal between the world's two biggest economies could be in jeopardy.

The Australian dollar, often seen as a proxy bet on the strength of the Chinese economy, fetched $0.6794, having reached its highest levels since late January. The Reserve Bank of Australia is expected to keep rates on hold when it meets later on Tuesday.

The Chinese yuan stood flat at 7.1230 per dollar in offshore trade, near its highest levels in almost two weeks.


TRENDING

OPINION / BLOG / INTERVIEW

COVID-19 seems cooking biggest ever global scam

The increasing number of corruption cases on COVID-19 funds from throughout the world and involvement of high profile persons indicate that the countries cant ignore corruption in their pandemic response programs. This has generated the nee...

Health Management Information Systems lack holistic, integrated, and pandemic resilient character

Being a part of the United Nations system, the World Health Organization WHO deserves its share of rebuke for its alleged failure issue COVID-19 health emergency alerts on appropriate time. However, the pandemic has also exposed loopholes i...

Pride in the time of coronavirus: a welcome move online?

This year is different in many ways not least as celebrations are also taking place against the dramatic backdrop of a global health crisis and a resurgence in grassroots activism following the death of George Floyd in Minneapolis. ...

COVID-19: Weighing up the benefits and limitations of edtech platforms

Edtech companies shouldnt focus on merely pushing contents, but to provide an interactive, effective teaching and learning environment. ...

Videos

Latest News

Shoot To Kill take PCS 1 NA title on tiebreaker

After 20 rounds of the PUBG Continental Series 1 - North America event, the top two teams could barely be separated. Shoot To Kill and Wildcard Gaming wound up identical totals of 198 points, leaving the championship to be determined by a k...

Trump blasts "left-wing cultural revolution" at Mount Rushmore

P resident Donald Trump on Friday railed against angry mobs that tried to tear down statues of Confederate leaders and other historical figures, warning thousands of supporters at Mount Rushmore that protesters were trying to erase the U.S....

Lord Buddha's ideals have lasting solutions to challenges world faces today: PM Modi

As the world fights extraordinary challenges, their lasting solutions can come from the ideals of Lord Buddha, Prime Minister Narendra Modi said on Saturday. Addressing the Dhamma Chakra Day event, the prime minister said the eight-fold pat...

Mizoram postpones opening of schools for 2020-21 academic session

The Mizoram government has postponed the opening of schools for the 2020-21 academic session for an indefinite period as a part of the containment measures to curb the coronavirus outbreak, a minister said. The government had earlier decide...

Give Feedback