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The euro rose on Monday as investors sold dollars on hopes that easing China’s lockdown measures could support global economic growth.
The calmer atmosphere in the stock markets in early European trade also put additional pressure on the dollar, which fell sharply last week, but remains the currency of refuge for investors this year when risky assets falter and concerns about the economy and inflation grow.
All risk-sensitive currencies rose, and the Australian pound rose about 1 percent, although it was initially unimpressed by an expected victory for the center-left Labor Party in the nationwide elections at the weekend.
The pound rose 0.5%, and the Norwegian krone performance was also strong, with the continuation of a wave of selling in the dollar that started last week on Monday.
The euro rose 0.3 percent to $1.0602, adding to gains of 1.5 percent last week and farther from $1.0349, the lowest in years, hit this month.
The Japanese yen also rebounded, driven by the selling of the US dollar, and rose to 127.66 yen against the dollar.
The dollar index, which measures the performance of the US currency against a basket of six competing currencies, fell 0.3 percent to 102.6. The dollar index rose over the 12 months to mid-May by 16 percent.
Last week, the Chinese yuan witnessed the best week since late 2020, and in internal markets on Monday, it strengthened, recording 6.6555 against the dollar, the strongest level since early May.
