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Dollar Exhibits Weakness Against Major Currencies

The U.S. dollar was weak against its major rivals on Tuesday as risk sentiment improved significantly amid gradual reopening of businesses across the world after several weeks of lockdown.

While Spain decided to remove a two-week mandatory confinement for all travelers from overseas starting July, Greece reopened restaurants and cafes by imposing new social distancing rules and other health safety measures.

The Japanese government fully lifted the state of emergency on Monday and urged people to adapt to a “new normal”.

U.K. Prime Minister Boris Johnson announced plans to reopen outdoor markets and car showrooms on June 1 and non-essential shops from mid-June.

The state of California lifted restrictions on houses of worship and mall, but personal services such as hair salons, nail salons and barbershops will remain closed.

News that US biotech firm Novavax had begun trials for an experimental coronavirus vaccine also bolstered sentiment.

The dollar index dropped to a low of 98.86 in late afternoon trades, and was last seen at 99.00, down nearly 0.9% from previous close.

The Euro was stronger against the dollar with a unit fetching $1.0986, compared to previous close of $1.0899.

Against Pound Sterling, the dollar weakened to $1.2338 from $1.2187, and against the Japanese currency, it was down marginally at 107.54 yen a dollar.

The Aussie was stronger with a unit fetching $0.6659 as against $0.6546 on Friday.

Against the Swiss franc, the dollar was down at CHF 0.9655, lower by about 0.65% from previous close of CHF 0.9719.

The Loonie was pretty stronger at C$1.3776, firming up from C$1.3985.

In U.S. economic news, new homes sales unexpectedly rose 0.6% month-over-month to an annualized rate of 623,000, beating forecasts of a 21.9% drop.

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