A stronger U.S. dollar dragged down the euro and the pound to their lowest levels in months as investors expected the U.S. economy to remain resilient to the spread of the coronavirus across the world, with payroll data from last week reinforcing traders' optimism.

Market participants were more positive about riskier currencies amid hints that the spread of the coronavirus could be slowing down and as some big businesses resumed work in China after the Lunar New Year break.

The Australian dollar rose 0.3% to 0.6689 per U.S. dollar, pulling away from a decade-low touched earlier in the session. It has lost 4.5% this year. The Chinese yuan also rose 0.3% to 6.9893 per U.S. dollar.

The U.S. dollar, however, was stronger against other major currencies. It pushed the euro to match a four-month low of $1.0942 and dragged the pound down to a 2-1/2-month low of $1.2873. Versus the euro, the pound was flat at 85.03 pence.

Source : Reuters