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Dollar weakens on improving risk sentiment, coronavirus concerns remain

Kitco News

NEW YORK (Reuters) - The dollar fell on Monday as stocks opened higher, indicating improving risk sentiment despite a rise in coronavirus cases.

Wall Street’s gain came after a sharp drop on Friday. [.N]

“It’s a weak start for the U.S. currency, I think it’s mostly risk on,” said Joe Manimbo, senior market analyst at Western Union Business Solutions in Washington.

Investors have been weighing better economic data against a new uptick in COVID-19 infections.

The global death toll from the virus reached half a million on Sunday, according to a Reuters tally. Cases surged in Southern and Western U.S. states, prompting California to order some bars to close in a rollback of efforts to reopen the economy.

The next major U.S. economic focus will be Thursday’s jobs report for June.

U.S. employers are expected to have added 3 million jobs during the month, according to the median estimate of economists polled by Reuters. Projections vary widely between economists, however, from as few as 405,000 jobs to as many as 9 million.

The dollar index was last down 0.21% at 97.27.

The greenback may get some boost from quarter-end demand later on Monday or on Tuesday, after underperforming this quarter, analysts said.

The euro gained 0.47% to $1.1270.

The dollar gained 0.21% against the Japanese yen to 107.44 yen.

Sterling weakened to a one-month low against the greenback on concerns about how Britain’s government will pay for its planned infrastructure program.

There are also doubts about whether Britain will seal a trade pact with the European Union as little progress has been made in agreeing Britain’s future relationship with the bloc, which it exited on Jan. 31.

The pound was last down 0.26% at $1.2301.

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Currency bid prices at 9:33AM (1333 GMT)

Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid

Previous Change

Session

Euro/Dollar EUR= $1.1270 $1.1217 +0.47% +0.54% +1.1288 +1.1218

Dollar/Yen JPY= 107.4400 107.2100 +0.21% -1.30% +107.4600 +107.0500

Euro/Yen EURJPY= 121.10 120.27 +0.69% -0.70% +121.1800 +120.1800

Dollar/Swiss CHF= 0.9465 0.9479 -0.15% -2.20% +0.9481 +0.9442

Sterling/Dollar GBP= 1.2301 1.2333 -0.26% -7.23% +1.2389 +1.2301

Dollar/Canadian CAD= 1.3673 1.3688 -0.11% +5.29% +1.3697 +1.3646

Australian/Doll AUD= 0.6856 0.6860 -0.06% -2.35% +0.6890 +0.6844

ar

Euro/Swiss EURCHF= 1.0670 1.0634 +0.34% -1.68% +1.0674 +1.0636

Euro/Sterling EURGBP= 0.9160 0.9093 +0.74% +8.35% +0.9171 +0.9085

NZ NZD= 0.6416 0.6423 -0.11% -4.75% +0.6442 +0.6408

Dollar/Dollar

Dollar/Norway NOK= 9.6737 9.6625 +0.12% +10.20% +9.7315 +9.6492

Euro/Norway EURNOK= 10.9045 10.9059 -0.01% +10.84% +10.9309 +10.8540

Dollar/Sweden SEK= 9.2873 9.3297 -0.02% -0.64% +9.3527 +9.2752

Euro/Sweden EURSEK= 10.4728 10.4753 -0.02% +0.03% +10.5105 +10.4540

Additional reporting by Elizabeth Howcroft in London

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