Investing.com - The dollar fell against the world's major currencies Monday after China's central bank cut the reserve requirement on Chinese banks, while hopes were reborn anew that Greece is finally set to receive its rescue funding package.
In early Asian trading on Monday, the euro was up against the greenback, with EUR/USD gaining 0.56% and trading at 1.3212.
Over the weekend, European policymakers suggested they were ready to vote to give Greece access to a EUR130 billion rescue fund.
Greece needs the money to avoid a messy default, and has agreed to accept tough austerity measures such as pension reform and public-sector layoffs in exchange for assistance.
Meanwhile China said banks could hold less cash in reserve and lend out more.
Such monetary policy easing sent investors worldwide racing for riskier assets like stocks and commodities on sentiment that China feels inflation is less of a threat and that the time for more expansionary policies has come.
Furthermore, Iran's announced decision to halt oil exports to France and the U.K. in anticipation of an E.U.-wide ban on Iranian crude taking effect July 1 sent oil prices rising, which sent the dollar sliding.
Currencies in commodity-rich countries like Canada and Australia were the real beneficiaries, enjoying a double-shot in the arm from Iran's move and China's easing measure.
Meanwhile, the dollar was down against the pound, with Cable rising 0.31% to hit 1.5876.
The greenback was down 0.13% against the yen, with USD/JPY trading at 79.46, and down against the Swiss franc, with USD/CHF losing 0.53% and trading at 0.9152.
The greenback was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.53% at 0.9920, AUD/USD up 0.69% at 1.0780 and NZD/USD up 1.02% at 0.8406.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% at 79.19.
All eyes will focus on Europe on Monday, when the currency zone's finance ministers meet to vote on Greece.
Monday is a holiday in the U.S.
In early Asian trading on Monday, the euro was up against the greenback, with EUR/USD gaining 0.56% and trading at 1.3212.
Over the weekend, European policymakers suggested they were ready to vote to give Greece access to a EUR130 billion rescue fund.
Greece needs the money to avoid a messy default, and has agreed to accept tough austerity measures such as pension reform and public-sector layoffs in exchange for assistance.
Meanwhile China said banks could hold less cash in reserve and lend out more.
Such monetary policy easing sent investors worldwide racing for riskier assets like stocks and commodities on sentiment that China feels inflation is less of a threat and that the time for more expansionary policies has come.
Furthermore, Iran's announced decision to halt oil exports to France and the U.K. in anticipation of an E.U.-wide ban on Iranian crude taking effect July 1 sent oil prices rising, which sent the dollar sliding.
Currencies in commodity-rich countries like Canada and Australia were the real beneficiaries, enjoying a double-shot in the arm from Iran's move and China's easing measure.
Meanwhile, the dollar was down against the pound, with Cable rising 0.31% to hit 1.5876.
The greenback was down 0.13% against the yen, with USD/JPY trading at 79.46, and down against the Swiss franc, with USD/CHF losing 0.53% and trading at 0.9152.
The greenback was down against its cousins in Canada, Australia and New Zealand, with USD/CAD down 0.53% at 0.9920, AUD/USD up 0.69% at 1.0780 and NZD/USD up 1.02% at 0.8406.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was down 0.41% at 79.19.
All eyes will focus on Europe on Monday, when the currency zone's finance ministers meet to vote on Greece.
Monday is a holiday in the U.S.