The US dollar fell on Monday from its highest level in two months against a basket of currencies with stocks rising after four consecutive weeks of declines ahead of a week crowded with economic data and political developments in the United States.
The recovery of US stocks at the end of last week helped slow the rise of the dollar, which is considered one of the safe havens, but signs of a slowdown in the recovery from the Corona virus pandemic and political doubts kept investors on the defensive.
Wall Street’s major indexes closed with gains of more than 1 percent as stocks recovered after four consecutive weeks of declines, the longest series of weekly losses for both the Standard & Poor’s 500 and the Dow Jones Industrial Average in more than a year.
Analysts said the dollar has been on the opposite path to equities for a few months.
The dollar index, which measures the green currency’s value against a basket of six competing currencies, fell about 0.3 percent to 94.264 at the end of the trading session, after earlier dropping 0.4 percent, the biggest drop in terms of percentage in about three weeks.
The US currency reached its highest level in two months at 94.745 last week, and recorded the largest weekly increase since early April.
The pound rose 0.89 percent to $ 1.2849, supported by hopes that Britain will reach a trade agreement with the European Union after leaving the bloc.
The euro rose 0.31 percent to $ 1.1666 after it fell on Friday to $ 1.16125, the lowest level in two months.
The dollar settled against the Japanese currency at 105.48 yen.
Investors are now looking forward to the first debate between the Republican and Democratic candidates in the US presidential race on Tuesday.
“Few will try to bet on the election result. They will at least wait until the television debate tomorrow,” said Kyosuke Suzuki, Societe Generale’s foreign exchange director.
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