The United States of America dollar index slipped by 0.4 percent on Thursday, June 7, to its weakest since May 17, helping currencies including sterling GBP= claw back some of their recent losses.
Despite the improving mood among investors on Thursday many remain cautious, especially ahead of a summit this weekend of the Group of Seven leaders when President Donald Trump looks set to clash with his counterparts over trade.
After a six-week long rapid rally the dollar has failed to break above key levels against some of its rivals, raising concerns the greenback’s weakness may have more room to run.
Against the yen JPY=, for example, it has failed to break above a 200 day moving average, potentially opening the door for more losses before a key G7 meeting this weekend.
The dollar fell 0.2 percent to 109.98 yen.
The Australian dollar dipped 0.2 percent against the dollar to $0.7652 AUD=, off a 1-1/2-month high touched on Wednesday, boosted in part by the country’s strong economic data.
The lira surged more than three percent TRY= to below 4.47 lira against the dollar after the central bank hiked the benchmark interest rate by 125 basis points, more than expected.
