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The dollar rose on Monday against the Japanese yen and the euro as investors worried that economic recovery might be slower than hoped and sought the safety of the US currency.

Safe-haven appeal boosted the dollar against its major peers in the New York morning as investors adjusted their risk expectations with an eye on warnings of a second wave of COVID-19 infections as more countries eased lockdown restrictions.

Against a basket of six rival currencies, the dollar was last up 0.31% at 100.1. The safe-haven Japanese yen hit a 15-day low versus the dollar, down around 0.82%, after a US buyer bought a large amount of dollar-yen, forcing the pair above 107.

The euro fell against the dollar, though had retraced some of that move mid-morning, last down around 0.19% at $1.082.

The dollar this week will take its cues from Federal Reserve Chair Jerome Powell's speech on Wednesday, and inflation, jobless and retail spending data, according to Manimbo. Also weighing on global risk sentiment is the prospect of worsening tensions between the United States and China.

Copyright Reuters, 2020

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