* Dollar index fell 5% since mid-March
* Safe-haven Japanese yen trades weaker
* Sterling buyoed by Brexit optimism
* Graphic: World FX rates in 2019 http://tmsnrt.rs/2egbfVh
By Olga Cotaga
LONDON, June 2 (Reuters) - The euro inched slightly lower on
Tuesday as the dollar gained some strength, though the pair
remained close to an 11-week high as investors maintained their
hope in a global economic recovery post coronavirus.
The optimistic mood persisted within markets despite growing
concerns over U.S.-China tensions and mass protests across
America over the death of a black man in police custody.
The euro was last trading hands at $1.1120, down 0.1%
EUR=EBS , close to March 17 $1.1154 high it rose to on Monday.
The U.S. dollar fell to a three-month low of 1.3530 against the
Canadian dollar and was last trading down 0.2% CAD=D3 .
The safe-haven Japanese yen fell 0.2% versus the greenback
to 109.79 JPY=EBS .
The U.S. dollar index against a basket of six major
currencies =USD fell to its weakest level since mid-March, at
97.73, before settling in neutral territory at 97.82.
The index has fallen about 5% from a peak hit in March when
panic over the COVID-19 pandemic gripped the world's financial
markets, prompting investors to scramble for the safety of
dollar cash.
"The strengthening of the commodity-linked currencies and
the weakening of the safe havens suggest that investors'
appetite remained supported for another day," said Charalambos
Pissouros, Senior Market Analyst at broker JFD Group.
"It seems that investors continued placing bets on the
prospect of a global economic recovery as governments around the
globe continue to ease their lockdown measures," Pissouros said.
Market risk sentiment was hurt only slightly on Monday when
Bloomberg reported China had told state-owned firms to halt
purchases of soybeans and pork from the United States, raising
concerns that the trade deal between the world's two biggest
economies could be in jeopardy. Investors' economic optimism has so far also survived the
rising social unrest in the United States where President Donald
Trump vowed to deploy thousands of heavily armed soldiers and
law enforcement to halt violence in the U.S. capital and other
cities if mayors and governors failed to regain control of the
streets. The protests erupted over the death of George Floyd, a
46-year-old African-American who died in Minneapolis police
custody after being pinned beneath a white officer's knee for
nearly nine minutes.
Elsewhere, the pound rose to a one-month high of $1.2554
GBP=D3 after news emerged that Britain may indicate its
willingness to compromise on fisheries and trade rules if the
European Union agrees to back off from its "maximalist" demands
related to regulatory alignment and fishing access. The UK and the EU walk into a new round of talks this week
ahead of the June 18-19 summit by which Britain is expected to
say whether it requires an extension to the December deadline of
the transition period.
Sterling was last down 0.3% at $1.2533.
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Dollar fell since mid-March https://tmsnrt.rs/3031wIj
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>