Dollar hits 3-month low as protests escalate across US

2020-06-01 12:18:44 GMT (Economies.com)
Dollar hits 3-month low as protests escalate across US

The US dollar fell on Monday, deepening its losses for the fifth straight day, and hit a 3-month low, as demand slowed as fears eased about the tensions between the US and China over Hong Kong, and the escalation of protests and riot in the US after the killing of George Floyd, ahead of key data releases on the manufacturing sector, which provide insight on the performance of the industrial activities in the world's largest economy after relaxing the coronavirus lockdown.

 

The dollar index fell 0.4% to the lowest since March 16 at 97.85 points, after opening at 98.30, and hit an intraday high of 98.32.

 

The greenback lost 0.2% on Friday, its second daily loss, after President Donald Trump's remarks on China.

 

The dollar index has lost 0.75% during May trading, posting its first monthly loss in 2020, as demand slowed for the US dollar as the best alternative investment, after many countries around the world relaxed their coronavirus-lockdown.

 

President Donald Trump did not take any unexpected measures against the Chinese government during his last press conference about the Hong Kong crisis on Friday, as he only announced sanctions on some Chinese officials, and directed his administration to end the special trade relationship with Hong Kong.

 

The Chinese government has passed a new National Security Law over Hong Kong, which reduces its autonomy after it gained independence from British rule in 1997.

 

It's clear then the US doesn't want roll back the progress made on trade with China, while aiming to extend talks to the second stage. 

 

Protests and riot continued in several US states, due to the killing of the African American citizen, George Floyd, from police brutality, weighing down on the battered US economy that already suffers from the coronavirus impact..

 

Investors are anticipating key economic data releases today on the US manufacturing PMI for May, which will deliver insight on the performance of the industrial activities in the world's largest economy after relaxing the coronavirus lockdown.

 

At 14:00 GMT, the ISM manufacturing PMI reading for May will be released, with forecasts to rise to 43.5 points in May vs. 41.5 in April.

 
 
 
  Symbol Last Change Chg.%
1.1299
-0.0032
0.2789%
1.2626
0.0119
0.9531%
Tadawul
7416.67
22.41
0.30%
18.674
0.327
1.782%
40.160
-0.075
0.186%
42.81
0.46
1.09%
1794.455
8.470
0.474%
 
 
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