The U.S. dollar index, which tracks the greenback against a basket of its peers, was at 91.187 following an earlier low of 90.986.
The dollar nursed losses on Tuesday after an unexpected slowdown in U.S. manufacturing growth prompted investors to trim bets that a booming U.S. economy could boost the greenback.
Data showed shortages of basic materials and transport snarls depressed the Institute for Supply Management manufacturing survey by 4.7 points to 64.7, toppling the dollar from a three-week peak on the yen and a two-week high on the euro.
With Asia trade thinned by holidays in Japan and China, further moves were muted, leaving the dollar to drift up slightly off overnight levels to sit at 109.14 yen and at $1.2054 per euro.
The common currency rose 0.3% overnight and found additional support from a surge in German retail sales and record-high euro zone factory activity.
Traders’ focus is now on services figures due on Wednesday and payrolls data on Friday and markets seem finely balanced. Some analysts say strong figures might boost the dollar by bringing forward expectations for higher interest rates, while others argue that a strong U.S. economy would weigh on the currency as imports gain and the trade deficit grows.
“The Fed’s dovish influential core won’t have any of it, but expectations for solid U.S. data this week and likely more hawkish regional Fedspeak leave the dollar index positioned for more two-way price action.”
Benchmark ten-year U.S. Treasury yields fell 2.5 basis points on Monday following the ISM miss and as New York Fed President John Williams reiterated that the recovery so far is “not nearly enough” to prompt monetary policy tightening.
erling was perched near a week-high on the euro and had overnight punched through its 20-day moving average against the dollar to sit at $1.3905 as traders reckon the Bank of England may announce a slowdown of its bond purchases at its Thursday meeting.
Elsewhere cryptocurrency ether extended its record run, zooming to a new record peak of $3,457.64 before pulling back a fraction.
· Biden pushes 17 years of free school, asks companies and wealthy to pay 'fair share'
President Joe Biden on Monday called on wealthy Americans and corporations to pay their "fair share" to fund free community college and other benefits for workers as he promoted his sweeping jobs and safety-net plans in Virginia.
Speaking at Tidewater Community College in the port city of Norfolk, Biden said his proposed expansion of the U.S. public education system would rebalance the economy and benefit lower-income Americans.
The United States could provide two free years of post-secondary education by raising the top income tax rate to the level it was in 2001, Biden said. He has proposed increasing the top marginal rate for the wealthiest Americans to 39.6% from 37%.
· Most COVID business capacity limits to end in New York region on May 19
· EBay says open to accepting to cryptocurrencies in future, exploring NFTs
EBay Inc (EBAY.O) is open to the possibility of accepting cryptocurrency as a form of payment in the future and is looking at ways to get non-fungible tokens (NFTs) on its platform, the company said on Monday.
· New wave of COVID-19 infection threatens Costa Rica tourist revival
The central bank forecasts less than 800,000 foreign tourists visiting Costa Rica this year, which would mark a more than 20% slide from last year. And last year saw only a third of the international travelers who visited in 2019, or about 1.01 million, which was the fewest in more than two decades.
· Brazil looks to new Pfizer contract to speed up vaccinations
Brazil is close to signing a second contract with Pfizer Inc (PFE.N) for another 100 million doses of its COVID-19 vaccine, of which 35 million shots are due to be delivered in October, Brazil's Health Minister Marcelo Queiroga said on Monday.
That raises to 200 million doses of the Pfizer shot for Brazil this year, he said, aimed at relieving the shortage of vaccines contributing to the world's second-deadliest outbreak outside the United States.
· Not a god: Taiwan defends health minister amid uptick in COVID cases
Taiwan Premier Su Tseng-chang defended the island's health minister on Tuesday amid a rare uptick in domestic COVID-19 infections, saying that even if he were a god reborn on earth he could not protect against every eventuality.
Taiwan has kept the pandemic well under control because of early and effective prevention, including largely closing its borders. Most of its 1,145 cases to date have been imported from abroad, although Taiwan has reported sporadic domestic infections.
Taiwan's total case numbers remain extremely small compared with those in many other countries, with only 75 people being treated in hospital. It has reported 12 deaths.
· Australia says chance of jail remote for India travel ban offenders
Australian Prime Minister Scott Morrison, under pressure to overturn rules barring travel from COVID-ravaged India, said on Tuesday it was "highly unlikely" travellers would face maximum penalties of five years jail and a A$66,000 ($51,000) fine.
The temporary restrictions have been excoriated by lawmakers, expatriates and the Indian diaspora.
· Australia opens new Pacific embassies as Chinese influence grows
Australia opened embassies in the Marshall Islands and French Polynesia on Tuesday as Canberra accelerates its efforts to counter growing competition from China for influence in the Pacific.
· Australia central bank keeps rates near zero as economy picks up speed
· Australia central bank keeps rates near zero as economy picks up speed
Its current A$100 billion ($77.40 billion) quantitative easing programme ends in September and the board will consider future bond purchases at its July board meeting
· UK and India to start full trade deal talks in the autumn - UK
· Opposition chief calls for lockdown as India’s coronavirus cases cross 20 million
Indian opposition leader Rahul Gandhi called for a nationwide lockdown as the country’s tally of coronavirus infections surged past 20 million on Tuesday, becoming the second nation after the United States to pass the grim milestone.
· China’s U.N. envoy hopes U.S. to emphasize dialogue in policy on N.Korea
China’s U.N. ambassador, Zhang Jun, said on Monday he hopes a U.S. review of North Korea policy will place more emphasis on dialogue, instead of pressure.
· U.S. Defense Secretary Lloyd Austin to attend Shangri-La Dialogue in Singapore
This year's event, which is being arranged by the International Institute for Strategic Studies (IISS), is scheduled to take place from June 4–5.
"It marks the Secretary's first trip to Southeast Asia, and as well as delivering his on-the-record speech, he will also conduct bilateral and multilateral meetings on the sidelines of the summit," IISS said in an emailed statement.
The Shangri-La Dialogue has typically attracted top level military officials, diplomats and weapons makers from around the globe since its launch in 2002.
· Philippines foreign minister issues expletive-laced tweet over China sea dispute
The Philippine foreign minister on Monday demanded in an expletive-laced Twitter message that China’s vessels get out of disputed waters, the latest exchange in a war of words with Beijing over the South China Sea.
Oil prices added to overnight gains on Tuesday, buoyed as more U.S. states eased lockdowns and the European Union sought to attract more travelers, which would help offset weakened fuel demand in India as COVID-19 cases soar.
Brent crude futures rose 14 cents, or 0.2%, to $67.70 a barrel at 0150 GMT, after climbing 1.2% on Monday.
U.S. West Texas Intermediate (WTI) crude futures also rose 14 cents, or 0.2%, to $64.63 a barrel, after gaining 1.4% on Monday.
Prices are being supported by the prospect of a pick-up in fuel demand in the United States and Europe, as New York state, New Jersey and Connecticut were set to ease pandemic curbs and the European Union planned to open up to more foreign visitors who have been vaccinated, analysts said.
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