The dollar edged down on Monday as optimism about the re-opening of economies hit by the coronavirus pandemic boosted risk appetite, lifting commodity currencies such as the Norwegian krone.

The gradual easing of lockdowns has fuelled optimism across global markets despite fresh trade tensions between the United States and China.

The dollar index drifted 0.05% lower at 100.28. The Norwegian krone was lifted by rising oil prices, supported by output cuts and signs of a recovery in demand.

Gains in stocks also lifted other major currencies such as the Australian dollar, which was up half a percent at $0.6446 and the euro gained 0.05% to $1.0827.

Against the yen, the U.S. currency lost about 0.2% at 107.20 per dollar after data showed Japan slipped into recession for the first time since 2015. Policymakers are bracing for the nation's worst postwar slump.

Source : Reuters