The dollar plummeted on Monday as optimism about reopening economies hit by the coronavirus pandemic increased risk appetite and lifted commodity currencies such as the Norwegian krone.
The gradual easing of lockdowns has given rise to optimism in the world market despite fresh trade tensions between the United States and China. “Markets are quietly risky overnight,” said Adam Cole, chief currency strategist at RBC Capital Markets.
The dollar index was 0.05% lower at 100.28. The Norwegian krone was lifted by rising oil prices supported by production cuts and signs of an increase in demand. Against the dollar, the krone jumped 0.6% to 10.1860. Other commodity currencies also rose and gold rose more than 1% to its high in over seven years.
Equity gains also lifted other major currencies such as the Australian dollar, which rose half a percent to $ 0.6446 and the euro rose 0.05% to $ 1.0827. Against the yen, the U.S. currency lost approx. 0.2% at 107.20 per. dollars after data showed Japan went down in recession for the first time since 2015. Politicians support their nations after the worst post-war era.
Investors were also looking for the purchasing managers’ index surveys due to major economies later this week for the next insight into the outlook. The pound stood at 89.35 pence per pound. Euro and was under pressure of $ 1,2107 following a week-long stalemate over a post-Brexit trade agreement with the European Union and increasing focus on the possibility of negative rates.
Bank of England chief economist Andy Haldane did not rule out such a move in an interview with the Telegraph newspaper published on Saturday.