Dollar struggles

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SINGAPORE- The dollar struggled to make headway on Monday, and riskier currencies inched ahead, as investor sentiment swung between hopes for a global economic recovery and fears that a fresh wave of coronavirus cases could undermine the revival.

Against a basket of currencies the greenback retreated from a one-week high hit on Friday and dipped 0.2 percent to 97.303. The trade-exposed Australian and New Zealand dollars rose about 0.2 percent to near the middle of recent ranges.

California ordered some bars to close on Sunday, following similar moves in Texas and Florida, as cases nationwide soar to record levels. Washington state and the city of San Francisco have paused re-opening plans.

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Yet elsewhere – from New York to Europe and Asia – re-openings continue apace and data illustrates a swift rebound.

“The debate is still very live,” said Westpac FX analyst Sean Callow. “How seriously are you going to bet that retreats in reopening in selected US states are enough to actually puncture the rally?”

For now the dollar has dithered rather than deflated.

The Aussie and kiwi are headed for monthly gains around 3 percent but made most of that ground in the early days of June and have tracked sideways since then. – Reuters

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