The U.S. dollar dropped against its most major rivals in the European session on Monday, as risk sentiment improved amid potential easing of lockdowns in China and on U.S. President Biden’s remarks that he is likely to drop Trump-era trade tariffs on China.
Biden announced that trade tariffs imposed on China by the previous Trump administration will be reviewed after discussing with Treasury Secretary Janet Yellen.
The U.S. President, who is in Japan, will attend a meeting of the Indo-Pacific strategic alliance known as the Quad on Tuesday.
China’s financial hub of Shanghai moved ahead with plans to resume part of its transportation network, taking another step towards lifting of COVID-19 lockdown.
U.S. stocks rebounded following a sell-off last week led by worries about an economic slowdown.
The greenback declined to near 4-week lows of 1.0688 against the euro and 0.9627 against the franc, from its early highs of 1.0557 and 0.9751, respectively. The greenback is seen facing support around 1.08 against the euro and 0.93 against the franc.
The greenback dropped to more than a 2-week low of 0.7127 against the aussie and near a 3-week low of 0.6492 against the kiwi, after rising to 0.6390 and 0.7040, respectively in previous deals. If the greenback drops further, 0.73 and 0.66 are possibly seen as its next support levels against the aussie and the kiwi, respectively.
The greenback depreciated to near a 3-week low of 1.2601 against the pound, from a high of 1.2473 hit at 5 pm ET. Versus the loonie, it moved down to near a 3-week low of 1.2773. Next key support for the greenback is seen around 1.28 against the pound and 1.25 against the loonie.
In contrast, the greenback held steady against the yen, after rebounding to 127.93 from the Asian session’s 4-day low of 127.15. At Friday’s close, the pair was worth 127.90.