The dollar index fell on Monday while the euro rallied after the European Central Bank indicated a move from negative interest rates, and riskier currencies gained ground along with equities.
The euro was the big gainer on Monday, having risen as much as 3.4% from its multi-year intraday low of $1.0349 on May 13.
The euro’s rally came as the dollar fell broadly after already selling off last week. The U.S. dollar index, which had hit a two-decade high of 105.01 on April 13, was last down 0.82% at 102.09.
The euro has risen after the European Central Bank indicated that it would become more hawkish, putting pressure on the dollar.
Speculators’ net long positions in the U.S. dollar fell to their lowest level since November last week, according to new figures.
The Australian dollar, meanwhile, was up 0.77% at $0.7106 after the country’s Labor Party’s victory in the national elections.
The yuan had its best week since late 2020 last week and in offshore markets on Monday firmed to 6.704 per dollar, its strongest since early May.
Meanwhile, the Swiss franc was gaining against the dollar after a bank member said the Swiss National Bank will tighten monetary policy if inflation remains persistently high.
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