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BUSINESS NEWS JUNE 8, 2020 / 6:17 AM / UPDATED 7 HOURS AGO

Dollar slips, commodity currencies gain as

risk sentiment improves
Gertrude Chavez-Dreyfuss 3 MIN READ

ADVERTISEME
NEW YORK (Reuters) - The U.S. dollar fell and commodity currencies gained on
Monday, as risk appetite increased on optimism about recovery from the coronavirus
pandemic amid a blockbuster May U.S. jobs report last Friday.

FILE PHOTO: A U.S. Dollar banknote is seen in this illustration taken May 26, 2020. REUTERS/Dado
Ruvic/Illustration

The safe-haven Japanese yen rose against the dollar, reversing losses the past several
days as risk sentiment gained with growing recovery hopes.
“There has been this unwinding of negativity since the last week of May, particularly
negative U.S.-China bets,” said Erik Bregar, head of FX strategy, at Exchange Bank of
Canada in Toronto.

Commodity currencies such as the Australian, New Zealand, and Canadian dollars were
well-bid. The New Zealand dollar, for one, climbed to its highest in four months after
New Zealand said it had stopped transmission of the coronavirus within the country.

New Zealand Prime Minister Jacinda Arden on Monday said the country would lift all
virus-containment measures apart from border controls, making it one of the first
countries to do so.

But as the United States and economies around the world reopen, there have been
nagging doubts as to where the recovery is headed. TRENDING

New Zealand
“The UK, for instance, plans to reopen and one of the things to consider is Brexit,” said eliminate coro
Juan Perez, currency trader at Tempus Inc in Washington. active cases

Archer urges v
“Once we establish that Brexit is one of those 2019 issues that needs to be resolved, we out against so
could see the major rally in the euro come under pressure because the market may
focus once again on what type of partnership Europe would have with the UK,” he From small to
added. sees biggest ra
justice

In afternoon trading, the dollar index dipped 0.1% to 96.641 in choppy trading, after Canadians des
indigenous ch
having gained overnight. security minist

Schalke draw
The dollar fell sharply against the yen, down 1.1% at 108.33 . It also dropped 0.6%
stretch winless
against Swiss franc, another safe haven, to 0.9566.

The euro was higher against the dollar despite data showing German industrial output
plunged the most on record in April as the pandemic forced companies in Europe’s
largest economy to scale back production.

The euro was last up 0.2% at $1.1303. It reached a three-month high of $1.1384 last
week after the European Central Bank announced it was expanding its stimulus
program.

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The New Zealand dollar rose 0.8% versus the greenback to US$0.6560, earlier hitting a
high of US$0.6564, its strongest since late January. The Australian dollar also rose 0.7%
to US$0.7017 AUD=D3, with the Canadian dollar also rising, trading 0.4% higher at
C$1.3366 per U.S. dollar.

Investors are now focused on the U.S. Federal Reserve policy meeting this week. The
Fed will need to balance signs that economic fallout from the pandemic is past its worst
against evidence the virus itself is not yet under control.

Reporting by Gertrude Chavez-Dreyfuss; Editing by Nick Zieminski and Tom Brown

Our Standards: The Thomson Reuters Trust Principles.

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