By Gina Lee

Investing.com – The dollar was down on Monday morning in Asia, nursing the previous week’s losses and . As fears about a global recession subside, investors have decreased their bets on rising U.S. rate to drive more gains.

By 1:32 AM ET (5:00 AM GMT), the index that measures the greenback’s performance against other currencies had fallen 0.2% to 101.27

Both the pair dropped 0.09%, to 127.

The pair rose 0.28% to 0,7180 while the pair rose 0.26% at 0.6551

Both fell 0.75 percent to 6.6483 and edged up 0.19 to 1.2640.

Global economic prospects could be revealed by data due this week. China’s and purchasing managers indexes, alongside the Eurozone consumer price index, are due on Tuesday. American will issue its May Employment Report, which includes, Friday.

On Monday markets will be relatively light with U.S. bond and stock markets closing for Memorial Day. The dollar traded at $1.0728 in Asia earlier today, just below a five week low. This was after it had fallen 1.5% against the single currency over the past week.

After a Friday rally the riskier Australian dollars and New Zealand dollar consolidated early in Asia. The yen, however, was slightly lower at 127.28 dollars. Nearly three weeks ago, both the Antipodean currencies had reached a new high.

The dollar could fall even further this week. Were it not for China’s lockdown, the global outlook would be brighter, and the dollar lower,” Commonwealth Bank Of Australia head of international economics Joe Capurso told Reuters.

On Monday, the dollar index stabilized after hitting a record 105.010 in February, whereas the pound maintained its gains from the week before.

In offshore trade the Chinese yuan remained steady. This was due to potential relaxation of COVID-19 in certain cities. Shanghai declared on Sunday that it will remove “unreasonable”, business restrictions starting in June 2022. Beijing also reopened parts its public transport system and some of its malls.

While some investors may be wary about calling an end to recent dollars strength, the positive U.S. consumer data as well as the loosening of China’s lockdowns are encouraging optimism regarding global growth.

Investors believe that after raising interest rates in the following two months aggressively, the U.S. Federal Reserve could take a break.

John Briggs from NatWest Markets Global Head of Desk Strategy said that “the Fed has not validated calls for further tightening,” Reuters.

Bitcoin continued its downward trend, and it has had trouble recouping losses that were made in the midst of a large sale of risk assets.