The dollar started the week slightly higher in Europe, albeit in modest volumes depressed by public holidays in the U.K. and U.S., against a backdrop of simmering tension between the U.S. and China.

5 AM ET (0745 GMT), the dollar index, which tracks the greenback against a basket of developed market currencies, was up 0.1% at 99.975, drifting to its highest in a week.

Dollar gains were narrow but broad-based, with the kiwi and the Swiss franc – two currencies at opposite ends of the risk spectrum – faring worst. USD/CHF rose 0.3% to 0.9734.

The Memorial Day weekend in the U.S. has largely muted news flow out of that country, but the dollar drifted back towards its March high against the Chinese yuan after pro-democracy protests again erupted in Hong Kong, prompting a strong response from local security forces.

The dollar was at 7.1552 yuan in the offshore market by 3:45 AM, up 0.1%.

Source : Investing.com