Tom Westbrook

SINGAPORE, (Reuters) – The dollar suffered its worst week in five months and is now headed for its first month-end drop. Investors have retreated from betting that higher U.S. interest rates would spur more gains while fears of a global economic recession have diminished a bit.

This week is filled with data which could give clues about global growth and U.S. rates.

The Memorial Day holiday closed the U.S. Stock and Bond markets, so trade will likely be lighter through Monday.

The dollar traded slightly weaker against the euro early in Asia, trading at $1.0728. That’s just above its five-week lowest, after having fallen by 1.5% on last week.

Following a Friday rally, both the New Zealand dollar and Australian dollars that are risk sensitive were stable. However, the yen fell to 127.28 US Dollars.

At $0.7161 the price remained near its three-week peak, while it hovered at $0.6536. [AUD/]

This week, the dollar may fall more. “If China hadn’t locked down, the global outlook wouldn’t be as bright and the dollar would fall lower,” Joe Capurso from the Commonwealth Bank of Australia (OTC) said in Sydney.

After hitting 105.010, a new two-decade record in May, the was stable at 101.660 Monday. Last week’s gains in Sterling were $1.2628.

The offshore currency exchange rate remained stable at 6.7210 dollars, buoyed largely by virus unlockdowns.

Shanghai declared on Sunday that it will remove “unreasonable” restrictions from businesses starting in June 1st, while Beijing opened parts of its public transport system and some malls.

Analysts are cautious about calling an end to recent dollars strength.

However, positive U.S. data on consumer spending and the ease in China of China lockdowns are helping to rekindle hope about global growth. These tend to boost the dollar against the currency of the exporters.

The Federal Reserve may take a break after it increases its interest rates aggressively in the following two months. Investors also took advantage of this hint.

John Briggs (global head of desk strategies at NatWest Markets), stated, “The Fed has not validated calls for more tightening.”

Bitcoin is struggling to recover losses caused by a wide-scale sell-off in risk assets. Cryptocurrencies are still on the sidelines. Last time, it purchased $29 333.

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Exchange rate bid prices starting at 0036 GMT

Description: RIC U.S. Last Close Pct. Change YTD High Bid Low

Previous changes

Session

Euro/Dollar

$1.0732 $1.0736 -0.03% -5.59% +1.0740 +1.0727

Dollar/Yen

127.2100 127.1000 +0.20% +10.72% +127.3300 +127.3500

Euro/Yen

136.52 136.42 +0.07% +4.77% +136.6300 +136.4000

Dollar/Swiss

0.9578 0.9574 +0.04% +5.00% +0.9583 +0.9571

Sterling/Dollar

1.2624 1.2628 +0.00% -6.62% +1.2634 +1.2625

Dollar/Canadian

1.2720 1.2722 -0.03% +0.59% +1.2728 +1.2715

Aussie/Dollar

0.7162 0.7160 +0.07% -1.43% +0.7166 +0.7149

NZ

Dollar/Dollar 0.6534 0.6539 -0.07% -4.54% +0.6540 +0.6524

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