The dollar fell today, Monday, amid ongoing concerns that the prolonged tightening monetary policy by major central banks may cause further damage to global economic forecasts. The euro recovered some losses incurred last week, rising 0.05% in Asian trading.
The British pound increased by 0.11%, also recovering some losses after dropping 0.8% following the significant 50 basis point rate hike announced by the Bank of England, which raised fears of a recession in the UK.
Meanwhile, business activity in the United States dropped to its lowest level in three months in June, with a deepening contraction in the manufacturing sector; however, economic growth improved slightly in the second quarter.
The Japanese yen rose by more than 0.2%, yet remained close to its lowest level in seven months at 143.87 to the dollar, recorded on Friday. The risk-sensitive Australian dollar increased by 0.04% after plummeting nearly 3% last week, and the New Zealand dollar rose by 0.37% after declining by more than 1% last week.
