The dollar fell on Tuesday as signs of recovery from the pandemic lifted risk appetite, but the U.S.-China tensions weighed in.
Commodity currencies Australian and New Zealand dollars both gained 0.5%, standing at $0.6571 and $0.6129, respectively.
The Chinese yuan stood at $7.1326 in onshore trade. The Japanese yen traded at 107.80 on the dollar.
The dollar index eased to 99.618.
The growing U.S.-China tensions were factored by trade conflict, China s handling of the coronavirus outbreak, and the mainland s move to implement the national security law in Hong Kong.
White House National Security Adviser Robert O Brien warned China of possible penalties once Hong Kong s autonomy is sabotaged. China s top diplomat Wang Yi said that the U.S. attacks were a smear .
Meanwhile, investors are worried that a drawback may happen with the current global policy responses and economic fallout.
Worldwide, restrictions are beginning to ease, raising hopes for faster growth recovery.
The pound gained 0.3% to $1.2218 and the euro rose 0.2% to $1.0918.
https://www.umarkets.com/en/news/dollar-slides-as-economic-recovery-hopes-lift-risk-appetite