Dollar on defensive as traders rush for risk assets

The dollar fell to three-year lows against the pound as the prospect of extended easy monetary conditions worldwide lifted risk sentiment.

The dollar index sat at 90.11, hovering near a six-week low of 89.941 hit overnight. The Aussie surged to a three-year high of $0.7945 before falling slightly to $0.7914.

The kiwi climbed as high as $0.7384 after the Reserve Bank of New Zealand warned about the outlook for the currency. 

The British pound gained 0.3% to $1.4158 after earlier hitting $1.4295, its strongest since April 2018. The euro traded at $1.21495, near a one-month high of $1.2180 touched overnight.

The dollar was up 0.2% to 105.485 against the Japanese yen. It hit an almost three-month peak against the Swiss franc.