Dollar slips as investors focus on recovery outlook

Dollar slips as investors focus on recovery outlook

01 Jun 2020 09:16 AM
 

The dollar slipped on Monday as investors looked past unrest in the United States to the global economic recovery from the coronavirus and hoped for an easing in Sino-U.S. tensions.

Data on Sunday painted a mixed picture of China's recovery, with momentum gaining in the construction and services sector even as factory activity growth slowed a touch.

Against a basket of currencies, the dollar had its worst month this year in May and was under pressure on Monday, dipping by a fraction to 98.166.

Stocks dipped on unrest rippling across the country. But currencies seemed to carry over the tone from last week, which ended with relief that U.S. President Donald Trump made no move to junk the Phase 1 with China.

Relations between Beijing and Washington have nosedived through the COVID-19 pandemic, but investors were relieved that Trump's move did not - so far - escalate tension over Hong Kong into a broader trade dispute