WASHINGTON (dpa-AFX) - The U.S. dollar exhibited weakness on Monday, losing ground against most major currencies, amid rising fears about coronavirus infections after report showed spikes in new cases in several states in America.
Markets were also awaiting the Federal Reserve Chairman Jerome Powell's testimony before the Congress on Tuesday and Wednesday.
A report from the Federal Reserve Bank of New York, manufacturing activity in New York steadied in the month of June after seeing sharp contractions in April and May. The New York Fed said its general business conditions index spiked to negative 0.2 in June from negative 48.5 in May. A negative reading indicates a contraction in regional manufacturing activity.
The jump by the index far exceeded the estimates of economists, who had expected the index to surge up to negative 27.5.
Data compiled by the New York Times showed a recent increase in coronavirus cases in more than 20 states, including California, Florida, and Nevada.
Texas and North Carolina also reported a record number of coronavirus-related hospitalizations on Saturday, adding to worries that businesses reopening may drive a second wave.
The dollar index, which dropped to a low of 96.60, recovered to 96.70 subsequently, but was still languishing in red, trailing its previous close by about 0.65%.
Against the Euro, the dollar weakened to $1.1318, from Friday's $1.1257. The euro area trade surplus reached its lowest since late 2011 as both exports and imports logged the biggest contraction on record in April amid coronavirus pandemic, data from Eurostat showed. The trade surplus plunged to a seasonally adjusted EUR 1.2 billion in April from EUR 25.5 billion in March. This was the lowest since October 2011.
The pound sterling was stronger by about 0.5%, fetching $1.2599 per unit, as against $1.2539 Friday evening.
Against the Japanese currency, the dollar was flat 107.37 yen, after moving between 107.00 and 107.57 yen.
The Aussie was quite stronger at US$0.6919, rising from $0.6866.
Against the Loonie, the dollar was slightly weak at C$1.3573. Data from Statistics Canada showed manufacturing sales in the country fell by a record 28.5% to $36.4 billion in April, following a 9.8% decline in March.
Against Swiss franc, it was weaker by about 0.35% at CHF0.9491. Switzerland's producer and import prices declined at the fastest pace in over four years in May, falling by 4.5% year-on-year, following a 4% decline in April. This was the lowest decline since March 2016, when it was 4.7%.
The producer price index fell 2.4% annually in May and import prices dropped 8%. On a monthly basis, producer and import prices declined 0.5% in May, following a 1.3% fall in the previous month. Producer prices dropped 0.4% and import prices decreased 0.8%.
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