Dollar pares losses in New York on safe-haven buying on selloff in the Dow

Although the greenback resumed its recent losing streak and fell to a 2-1/2 month low due to Friday's release of poor U.S. jobs report together with expectation that rising inflation would devalue dollar, usd later pared intra-day losses on safe-haven buying on weakness in U.S. stocks. (Dow ended at 34,742, down 350 points, or 2.55%)  
  
Versus the Japanese yen, the dollar found renewed buying at 108.47 in New Zealand and rose to 108.91 in Asia. Price then gained to session highs of 109.05 in early European morning on cross-selling in jpy before retreating to 108.66 at New York open on fall in U.S. yields and then moved sideways.  
  
The single currency extended its recent ascent and gained to 1.2176 in New Zealand before retreating to 1.2137 in European morning on profit-taking. Despite rising to a 10-week high of 1.2177 due to upbeat EU Sentix data, the pair later fell to session lows of 1.2128 near New York close on cross-selling in euro.  
  
Reuters reported Sentix's index for the euro zone climbed to 21.0 from 13.1 in April. A Reuters poll had pointed to a reading of 14.0.    A current conditions index moved to positive territory, hitting its highest level since May 2019. An expectations index climbed to a record 36.8 from 34.8 a month earlier.  
  
The British pound initially rose from 1.3980 to 1.4044 in New Zealand on weekend's news of local election win by ruling UK Tory party before retreating to 1.4016 in Asia. However, cable then rallied to a 10-week high of 1.4158 at New York open before retreating to 1.4108 on profit-taking. The pair then rebounded again to 1.4154 before trading broadly sideways.  
  
Reuters reported Scotland's main pro-independence party captured dozens of seats on Friday in a Scottish parliament election that could determine the future of the United Kingdom, but early results left uncertainty over whether it would win a crucial majority.    The Scottish National Party says it will seek to hold a new vote on secession by the end of 2023 if there is a pro-independence majority returned to the devolved 129-seat parliament - setting up a potential legal showdown with Prime Minister Boris Johnson, who says he will refuse any such vote.    The SNP won 38 of the first 47 seats so far declared, including East Lothian, Edinburgh Central and Ayr, three of the election's key battlegrounds. The SNP failed to win Dumbarton, the most marginal seat at the last election.  
  
Data to be released on Tuesday:  
  
U.K. BRC retail sales, Japan all household spending, China PPI, CPI, Italy industrial output, Germany wholesale price index, ZEW economic sentiment, current conditions, EU ZEW survey expectation, Canada leading index, U.S. redbook, JOLTS job openings.