Dollar tumbled against a basket of currencies as investors became more optimism governments’ stimulus packages will pull the global economy out of the recession. In addition, more upbeat views showed that the global recession is easing which sent investors in search of assets with higher yield and dampened dollar’s safe-haven demand. The index, which tracks the greenback against a basket of currencies fell to year low of 79.22 in New York afternoon.

The British pound posted its biggest monthly gain against the dollar in 24 years and it hit the highest level in 2009 versus the dollar. Cable’s rise was partly due to the unexpected much better-than-expected U.K. house price index which jumped from –0.4% to 1.2% in May. However, the pound briefly retreated to 1.6053 in New York morning due to cross selling versus euro, eur/gbp formed intra-day high 0.8801 at that moment. Then, cable found renewed buying from there, sending it to this year high at 1.6200 after U.S. GDP came in at –5.7% compared to –6.1% from the previous quarter and the better-than-expected U. of Michigan survey (68.7 vs forecast of 42.0) as the data suggested recession is moderating.

Euro also hit this year high of 1.4168 against the greenback after the U.S. data. Furthermore, the rising in global stock markets with some equities markets posted 2009 highs reduced safe-haven demand for the dollar.

Surging commodity prices (oil prices rose to a 6-month high above $66/ barrel and gold was above $980/oz) and the weak U.S. dollar sent commodity currencies, Aussie dollar, New Zealand dollar and Canadian dollar, to multi-month highs against the greenback, aud/usd jumped to 0.8014, nzd/usd rallied to 0.6415 while usd/cad hit 1.0898.

Next Monday will be a holiday in New Zealand and Switzerland. Data to be released in the coming week include Australia retail sales, German, Eurozone and U.K. manufacturing PMI, U.K. Halifax house price, U.S. PCE and core PCE, personal income and spending, ISM manufacturing, construction spending, Canada GDP and PPI on Monday, Australia current account, Switzerland GDP, U.K. construction PMI, Eurozone unemployment, U.S. pending home sales data on Tuesday, Australia GDP, German, Eurozone and U.K. service PMI, Eurozone GDP and PPI, U.S. ADP employment data, durable goods orders, factory orders, ISM non-manufacturing and Fed’s Bernanke will testify on Wednesday, Japan business capex, Australia trade balance, Eurozone retail sales, BoE rate decision, ECB rate decision, U.S. jobless claims, BoC rate decision and Ivey PMI on Thursday,