SINGAPORE, Sept 2 (Reuters) - The U.S. dollar made a
limp recovery in early Asian trade after days of selling, ahead
of the U.S. markets reopening later on Tuesday after the Labor
Day holiday.
The dollar index was last up 0.1% at 97.709, having
touched its lowest on Monday since 28 July after five
consecutive days of loss, as investors sought alternative havens
such as gold where prices traded just shy of record levels.
Traders have sold the greenback as U.S. President Donald
Trump's attacks on the Federal Reserve, including his decision
to remove Governor Lisa Cook, raise fear that the White House is
undermining the central bank's independence at a time when the
case to begin cutting interest rates is far from clear.
"The Fed could be ominously poised to start its rate-cutting
cycle," said Chris Weston, head of research at Pepperstone Group
in Melbourne. "People see the attraction of being in gold."
Bullion was on track to notch a sixth day of gain after
reaching its highest price since 21 April on Monday. It was last
up 0.2% at $3,482.55 a troy ounce whereas silver
retreated 1.2% after reaching a 14-year high.
Against the yen, the dollar was 0.1% stronger at 147.33 yen
, remaining in the trading channel it has sat in since
the start of August.
U.S. economic data for August will be in focus later this
week as market watchers try to ascertain the extent to which
Trump's policies are affecting industrial activity and the
labour market. Data due include ISM's manufacturing and services
purchasing managers' indices and the non-farm payrolls report.
The euro edged lower, last off 0.03% at $1.1707 so
far in Asia, after data released on Monday showed the HCOB euro
zone manufacturing PMI expanded in August for the first time in
three years. Consumer price data for the same month is due later
on Tuesday.
The Australian dollar paused for breath after five days of
gain, last trading down 0.1% at $0.6549, near its
highest in more than two weeks.
The kiwi traded flat at $0.5903 after a three-day
winning streak, which has pushed the currency to a two-week
high.
Sterling traded at $1.3539, down 0.1% so far on the
day, retreating from a two-week high reached on Monday.