Dollar Loses Ground Against Peers

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The U.S. dollar weakened against its peers on Monday as risk sentiment improved after U.S. political uncertainty faded on reports President Donald Trump could be discharged from the hospital later in the day.

Optimism about a new U.S. coronavirus relief package, and encouraging economic data from eurozone too contributed to the gains of dollar’s major rivals.

The dollar index, which slipped to 93.37 around mid-morning falling gradually from Friday’s close of 93.84, was last seen at 93.44.

Against the Euro, the dollar slipped to $1.1787, giving up nearly 0.6% from Friday’s $1.1718. Eurozone retail sales grew 4.4% month-on-month in August, in contrast to a 1.8% fall in July due to relaxation of the coronavirus containment measures, Eurostat data revealed. Economists had forecast a monthly growth of 2.4%.

Eurozone investor confidence dropped marginally in October after five consecutive rises, survey data from Sentix showed. The investor confidence index fell to -8.3 in October from -8.0 in September. However, the score was better than economists’ forecast of -9.5.

The euro area private sector expanded only marginally in September as the service sector slipped back into contraction, while manufacturing output grew the most in over two-and-a-half years, final survey data from IHS Markit showed.

The Pound Sterling was stronger at $1.2985, gaining about 0.4%. The UK service sector continued to log strong growth in September underpinned by another upturn in new work amid reduced pandemic restrictions, final data from IHS Markit showed.

The Yen weakened to 105.74 a dollar, falling from 105.31 a dollar.

The Aussie was gaining about 0.3%, with a unit fetching US$0.7183 compared with US$0.7161 on Friday. The services sector in Australia moved into expansion territory in September, the latest survey from IHS Markit showed with a seasonally adjusted services PMI score of 50.8.

Meanwhile, Australia’s business conditions and confidence improved in September, survey data from the National Australia Bank showed.

The Swiss franc was stronger at 0.9151 a dollar, firming up from its previous close of 0.9206 a dollar.

The Loonie firmed up to 1.3261 a dollar from 1.33018 Friday afternoon, as oil prices rose sharply.

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