The dollar inched higher, stock markets struggled for traction and oil fell on Monday as a U.S.-China spat over the origin of the coronavirus put the brakes on optimism about an economic re-start as countries around the world ease restrictions.

In reduced trade, with China and Japan on holiday, U.S. stock futures fell 1.7% and U.S. crude tumbled 7%. The safe-haven U.S. dollar rallied to one-week highs against the risk sensitive Australian and New Zealand dollars.

South Korea’s KOSPI fell, Hong Kong’s Hang Seng returned from a two-session holiday with a 3.5% drop, while Australia’s ASX 200 eked out a 0.5% gain.

The Australian dollar dropped below the 64-cent mark for the first time in a week, falling 0.4% to $0.6390.

Elsewhere in currency markets, the safe-haven Japanese yen rose 0.2% to 106.72 per dollar and the euro was a touch weaker at $1.0950. The pound and New Zealand dollar slipped.

Source: Reuters