The dollar index weakened to its lowest level in more than two weeks at 102.6 as a relief rally across equities and signs of progress in China’s effort to bring coronavirus outbreaks under control spooked investors away from the safe-haven currency. The most pronounced selling activity was against commodity-linked currencies such as the Australian and New Zealand dollars. Further downward pressure came from a stronger euro and pound on mounting evidence that other major central banks, particularly the ECB and the Bank of England, would be forced to act more aggressively to tame record inflation.
