Dollar went down to an eight-month low versus the Australian dollar and the Norweigian krone on currency trades after reports from China showed the economy might be recovering, rising demand for commodities and higher yielding assets.

Russian ruble went to its highest level since January as Chinese manufacturing grew for a third consecutive month in May. Dollar weakened to a five month low against the euro. US manufacturing numbers have contracted.

Dollar went down a 0.3 percent to $1.4195 per euro on early New York trades. It had earlier reached $1.4246, the weakest point since December 29th of last year. The greenback reached $1.6408 per pound.

The Dollar Index declined to the lowest level this year as Government decided to take over a majority of General Motors Corp, after the company filed for bankruptcy. However GM has found a new paradise on China shoppers.

“When you see what’s going on in GM and the significant government ownership it’s going to result, that does discourage private capital coming into the U.S.,” said independent strategist, Robert Sinche at Bank of America Corp. on a radio interview.  “It’s hard to find any major source of capital that’s going to really commit to the U.S. and help support the dollar.”

The dollar will weaken to $1.45 “pretty easily,” said Sinche.
Japanese yen was lower against 16 actively training currencies, dropping to its lowest point against Australian and New Zealand dollars on fx trading.