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The dollar's dominance will slowly melt away over the coming year on weakening global demand and a sombre U.S. economic outlook, according to a Reuters poll of currency forecasters whose views depend on there being no second coronavirus shock.

Despite fears a surge in new Covid-19 cases would delay economies reopening and stymie a tentative recovery, world stocks have rallied - with the S&P 500 finishing higher in June, marking its biggest quarterly percentage gain since the height of the technology boom in 1998.

Caught between bets in favour of riskier investments, weak U.S. economic prospects as well as an easing in the thirst for dollars after the Federal Reserve flooded markets with liquidity, the greenback fell nearly 1.0 per cent last month. It was its worst monthly performance since December.

While there was a dire prognosis from the top U.S. medical expert on the coronavirus' spread, the June 25-July 1 poll of over 70 analysts showed weak dollar projections as Fed Chair Jerome Powell on Monday reiterated the economic outlook for the world's largest economy was uncertain.

"The dollar rises in two instances: when you see risk off or when there is a situation where the U.S. is leading the global recovery, and we don't think that's going to be the case anytime soon," said Gavin Friend, senior FX strategist at NAB Group in London.

"The U.S. is playing fast and loose with the virus, and chronologically they're behind the rest of the world."

Currency speculators, who had built up trades against the dollar to the highest in two years during May, increased their out-of-favour dollar bets further last week, the latest positioning data showed.

About 80 per cent of analysts, 53 of 66, said the likely path for the dollar over the next six months was to trade around current levels, alternating between slight gains and losses in a range. That suggests the greenback may be at a crucial crossroad as more currency strategists have turned bearish.

But more than 90 per cent, or 63 of 68, said a second shock from the pandemic would push the dollar higher. Five said it would push the U.S. currency lower.

Much will also depend on debt servicing and repayments by Asian, European and other international borrowers in U.S. dollars.

While an early shortage of dollars in March from the pandemic's first shock pushed the Fed to open currency swap lines with major central banks, international funding strains have eased significantly since. In recent weeks, usage of the facility has reduced dramatically.

That trend is expected to continue over the next six months with major central banks' usage of swap lines to "stay around current levels", according to 32 of 46 analysts. While 13 predicted a sharp drop, only one respondent said use of them would "rise sharply".

The dollar index, which measures the greenback's strength against six other major currencies, has slipped over 5 per cent since touching a more than three-year high in March.

When asked which currencies would perform better against the dollar by end-December, a touch over half of 49 respondents said major developed market ones, with the remaining almost split between commodity-linked and emerging market currencies.

"The dollar is so overvalued, and has been overvalued for a long time, it's time now for it to come back down again, as we head towards the (U.S.) election," added NAB's Friend.

Over the last quarter, the euro has staged a 1.8 per cent comeback after falling by a similar margin during the first three months of the year. For the month of June, the euro was up 1.2 per cent against the dollar.

The single currency was now expected to gain about 2.5 per cent to trade at $1.15 in a year from around $1.12 on Wednesday, slightly stronger than $1.14 predicted last month. While those findings are similar to what analysts have been predicting for nearly two years, there was a clear shift in their outlook for the euro, with the range of forecasts showing higher highs and higher lows from last month.

"In comparison to even a month or two ago, the outlook in Europe has improved significantly," said Lee Hardman, currency strategist at MUFG.

"I think that makes the euro look relatively more attractive and cheap against the likes of the dollar. We're not arguing strongly for the euro to surge higher, we're just saying, after the weakness we have seen in recent years, there is the potential for that weakness to start to reverse."

Beijing, Mar 29: In a rare display of public anger in China, dozens of people in central Hubei province, the epicentre of the coronavirus outbreak till recently, attacked official vehicles after they were stopped from crossing a bridge and travel to neighbouring Jiangxi after the lifting of the lockdown.
Hubei province with over 56 million people was kept under lockdown from January 23 as part of aggressive measures to bring down COVID-19 cases which rapidly spread in the area.

Videos on Chinese social media on Friday showed unprecedented scenes of police from Hubei and Jiangxi clashing on the bridge connecting the two provinces over barricades erected from stopping Hubei people from moving out over fears of coronavirus spreading.

Policemen from both sides argued over how to verify if people were allowed to enter Jiangxi, according to local media reports.

It was a major relief for millions of people in Hubei province, when the Chinese government which kept it under lockdown lifted the restrictions on travel.

The government will permit people from the province to travel if they hold a green health code, meaning no contact with any infected or suspected COVID-19 cases.

But people of Hubei to their shock on Friday found roadblocks on the 1st Yangtze River Bridge that separates Huangmei county in Hubei erected by Huangmei county of Jiangxi province.

In local media reports, witnesses were quoted as saying that Huangmei police in Jiujiang erected roadblocks on the bridge to stop people from Hubei from crossing it, a move they alleged stigmatised them.

Video footage shared online showed rows of police armed with riot shields holding back the crowds, while members of the public could be seen damaging and even overturning police vehicles.

In a clip published by the Huanggang city government, which administers Huangmei, the county's Communist Party chief Ma Yanzhou could be heard speaking to the people through a loud hailer, warning them that by gathering in a large group they were increasing their chances of contracting the virus, Hong Kong-based South China Morning Post reported.

While it is unclear exactly how the clash started, police from the two sides published separate official statements online, which were quickly deleted, it said.

The incident underlines the problems China faces as it seeks a return to normalcy after months of lockdown, the Post said.

After the incident, the governments of Huangmei and Jiujiang on Friday issued a joint statement saying they had agreed to remove the barriers set up to restrict travel during the lockdown, and also to recognise each other's health screening codes to make it easier for people in good health to get to where they needed to be, the Post report said.

An article by the ruling Communist Party of China (CPC) mouthpiece, People''s Daily acknowledged the problems in getting the country back on its feet.

"In the past few days, all walks of life have called for governments to accept workers from Hubei," it said.

"However, it is undeniable that some places, intentionally or not, have set up obstacles for Hubei migrant workers to return to their posts and hold prejudices against them."

Washington, Feb 6: The US has expressed concern over the current situation of religious freedom in India and raised the issue with Indian officials, a senior State Department official has said.

The remarks came in the wake of widespread protests held across India against the Citizenship Amendment Act (CAA).

The senior State Department official, on condition of anonymity, said that he has met with officials in India about what is taking place in the nation and expressed concern.

"We are concerned about what's taking place in India. I have met with the Indian foreign minister. I've met with the Indian ambassador (to express my concern)," the official, who was recently in India, told reporters on Wednesday.

The US has also "expressed desire first to try to help and work through some of these issues", the official said as Secretary of State Mike Pompeo launched a 27-nation International Religious Freedom Alliance.

"To me, the initial step we try to do in most places is say what can we do to be of help you work through an issue to where there's not religious persecution. That's the first step, is just saying can we work with you on this," the official said.

India maintains that the Indian Constitution guarantees fundamental rights to all its citizens, including its minority communities.

It is widely acknowledged that India is a vibrant democracy where the Constitution provides protection of religious freedom, and where democratic governance and rule of law further promote and protect fundamental rights, a senior official of the Ministry of External Affairs has said.

According to the CAA, members of Hindu, Sikh, Buddhist, Jain, Parsi and Christian communities who have come from Pakistan, Bangladesh and Afghanistan till December 31, 2014 following religious persecution there will get Indian citizenship.

The Indian government has been emphasising that the new law will not deny any citizenship rights, but has been brought to protect the oppressed minorities of neighbouring countries and give them citizenship.

Defending the CAA, Prime Minister Narendra Modi last month said that the law is not about taking away citizenship, it is about giving citizenship.

"We must all know that any person of any religion from any country of the world who believes in India and its Constitution can apply for Indian citizenship through due process. There's no problem in that," he said.