By Gina Lee
Investing.com – The dollar was down on Thursday morning in Asia, with investors retreating from the safe-haven asset over increased hopes of an economic recovery.
Corporate earnings from U.S. companies such as Apple (NASDAQ:AAPL) and Amazon (NASDAQ:AMZN) are due next week, increasing investor risk appetite.
But the increase was capped by ever-increasing COVID-19 numbers. Over 12 million cases globally as of July 9, according to Johns Hopkins University data, with some countries re-imposing lockdown measures.
“Rising stocks and a dip in Treasury yields are slight negatives for the dollar, but the market can’t move too far because we still have to worry about the virus,” said Minori Uchida, head of global market research at MUFG Bank.
“A lot of major U.S. economic data have been positive, so this will be less of a trading factor going forward. People are looking for cues from stocks, yields, and hedging costs."
The U.S. Dollar Index that tracks the greenback against a basket of other currencies slipped 0.16% to 96.213 by 12:21 AM ET (5:21 AM GMT).
The USD/JPY pair was down 0.01% to 107.23.
The USD/CNY pair slid 0.29% to 6.9840. The yuan was boosted by better-than expected inflation data for June, released by the National Bureau of Statistics earlier in the day. The Producer Price Index (PPI) fell by 3% year-on-year, and the Consumer Price Index (CPI) dropped 0.1% month-on-month.
The AUD/USD pair gained 0.09% to 0.6988 and the NZD/USD pair was up 0.20% to 0.6587.
Meanwhile, the GBP/USD pair gained 0.17% to 1.2630.