Dollar hovers near two-week lows as traders doubt U.S. recovery

The dollar started the week hovering near two-week troughs on Monday as investors questioned whether the U.S. pandemic recovery would be as fast as anticipated. 

The dollar index traded at 90.427, near last week’s low of 90.249, its highest level since Jan. 27. The index hit a two-month high of 91.6 on Feb. 5 on hopes that the U.S. economy would outpace other countries but has weakened amid low employment data.

The euro stood at $1.21215 following a 0.6% climb last week. The dollar gained 0.2% to 105.09 against the yen, recovering some of the 0.4% loss last week. 

Financial markets in Asia remained closed on Monday in celebration of Lunar New Year, while the United States observed Presidents Day.

The dollar has been going back and forth this year with some traders expecting it to strengthen as the U.S. economic recovery outperforms others, including that of Europe. 

Others see the U.S. recovery as a major driver in a global reflation that would boost risk assets at the greenback’s expense.