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Dollar Sheds Ground Against Major Counterparts

The U.S. dollar, which climbed to a fresh 2-decade peak last week before losing some ground, came further off that level on Monday, with traders looking to take some gains despite a slew of economic data raising concerns about global economic slowdown.

Data from the National Bureau of Statistics showed that China's industrial output contracted 2.9% year-on-year in April, missing expectations for an increase of 0.4% and down from 5% in March.

According to a report released by the Federal Reserve Bank of New York, manufacturing activity unexpectedly contracted in the month of May, with the general business conditions index plunging to a negative 11.6 in May from a positive 24.6 in April. A negative reading indicates a contraction in regional manufacturing activity.

Economists had expected the index to slump to a positive 15.5, which would have still indicated growth in the sector.

The European Commission cut its growth forecast for the 19 countries sharing the euro to 2.7% this year from 4% predicted in February, citing the impact of the Ukraine war and soaring inflation. GDP growth is expected to slow to 2.3% next year, below the 2.7% seen before, the EC report said.

The dollar index, which scaled a new 20-year peak at 105.01 on Friday, dropped to 104.14 this afternoon before edging up slightly to 104.22, still down 0.33% from the previous close.

Against the Euro, the dollar is down at $1.0436, easing from $1.0413.

The dollar is trading at $1.2322 against Pound Sterling, weakening from $1.2264.

Against the Japanese currency, the dollar is weaker by about 0.1% at 129.10 yen.

The dollar is at 0.6971 against the Aussie, compared with 0.6940 Friday evening. Against Swiss franc, the dollar is flat at CHF 1.0018 after having firmed to CHF1.0066 earlier. The Loonie is stronger at 1.2853 a dollar thanks to higher crude oil prices.

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