Dollar retreats from two-month high as stocks rally
The dollar pulled back from a two-month high against a basket of currencies on Monday as equities rallied after four straight weeks of declines ahead of a slew of economic data and political developments in the United States.
A rebound in U.S. stocks at the end of last week helped slow the climb of the dollar, considered a safe haven, but signs of a slowdown in the nascent recovery from the pandemic and political uncertainties have kept investors on the defensive.
The dollar index slipped as low as 94.155 and last fell 0.36%, on pace for its biggest daily percentage drop in a month. The greenback reached a two-month high of 94.745 last week and posted its biggest weekly rise since early April. Against the yen, the dollar was more subdued at 105.45 yen .
Sterling was last trading at $1.2884, up 1.16% on hopes Britain could secure a Brexit trade deal with the EU.
The euro gained 0.34% to $1.1669 after dropping to $1.16125 on Friday, its lowest in two months.
Investor attention may now turn to the first U.S. presidential debate on Tuesday.
Meanwhile, worries abound that the economic recovery is stalling as many stimulus programs have expired, curbing consumer spending.
This week will bring more data on the health of the world’s biggest economy, including consumer confidence on Tuesday, a manufacturing survey and consumer data on Thursday, and jobs figures on Friday.
Reference: CNBC
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