© Reuters.
By Scott Kanowsky
Investing.com — The dollar eased back slightly from a 20-year high reached earlier this month on Monday, following disappointing U.S. economic data that may dampen expectations for aggressive Federal Reserve rate hikes.
As of 02:38 AM EST (0638 GMT), the – which measures the greenback against six rival currencies – was down 0.13% at 103.820. The index is trading below a two-decade peak of 105.79 touched on June 15 after the Fed raised by 75 basis points in a bid to curb soaring .
Fears that these Fed actions could trigger a global economic downturn gave support to the greenback and the perceived relative safety of dollar-denominated assets.
But on Friday, the final June reading of the closely-watched University of Michigan index slumped to a record low, suggesting that Americans are becoming more pessimistic about the economic outlook amid a recent spike in prices. The gloomy mood may lead some investors to reevaluate their predictions for potential .
Major currencies in Europe increased against the dollar. rose by 0.12% to $1.2278, while firmed slightly by 0.05% to $1.0559 ahead of a key European Central Bank forum in Portugal this week.
Elsewhere, is holding near the flatline following an announcement by authorities in Shanghai that the city had emerged victorious over a recent COVID-19 outbreak.
In Russia, the was also steady at 53.40 per dollar after a deadline for Moscow to repay foreign debt passed, potentially putting the country on a path toward default.