By Gina Lee

Investing.com – The dollar was down on Monday morning in Asia as investors cut bets on further dollar gains from rising U.S. interest rates and hoped that loosening lockdowns in China can help the global economy.

By 10:46 ET (23:46 GMT), the index that measures the greenback’s value against other currencies had fallen to 102.735, or 0.43%.

“The dollar may be carving out a peak, given Europe’s resilience to the energy shock and potential easing of lockdowns in China,” Commonwealth Bank of Australia (OTC:) strategist Joe Capurso told Reuters.

It fell to 127.31 by 0.40%

Both the pair rose 0.75% to 0.7085, and both gained 1.04% at 0.6455.

“It’s a reasonably positive start to the week,” National Australia Bank’s head of foreign exchange strategy Ray Attrill told Reuters.

“We did have a sharp reversal of U.S. equity market weakness in the last hour or so on Friday, so maybe there’s some momentum there,” Attrill added. “The U.S. dollar looks, for the time being, to be losing upside momentum.”

“Given the type of policy support, we expect investment to rebound faster than consumer spending,” Capurso told Reuters. “Investment is mining commodity-intensive (and therefore) very positive for commodity currencies such as the Australian dollar and Canadian dollar, in addition to the yuan.”

The pair dropped 0.05% from 6.6894 to 1.2538, and gained 0.42% from 1.2538 to 1.2538. China is loosening its lockdowns in Shanghai and cut its five-year loan prime rate last week, signaling that the authorities are supporting a recovery.

Geopolitics is also on investors’ radar. to Seoul and Tokyo last Friday, promoting greater U.S. economic engagement and counter against China’s influence. Biden met Japan’s emperor early today ahead of talks with Prime Minister Fumio Kishida.

Australia, Asia Pacific elected its new government Saturday. However, it will not likely to alter the trend of interest rate increases.

It is anticipated that the Federal Reserve will raise its benchmark cash rates by 50 basis point on Wednesday. Investors will also be awaiting the minutes of U.S. Federal Reserve meetings, which are due that day.

Data and the will both be available on Tuesday.