The dollar index slipped about 0.2 percent to 95.816, extending the previous session’s 0.4 percent drop.
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The euro was also steady, at $1.1187 after shedding 0.3 percent overnight.
Copper and gold mining company Freeport-McMoRan slumped 10 percent, the most in the S&P 500.
The losses dragged all Asia’s bourses lower.
In Europe, France’s CAC-40 slid 2.4 percent to 4,373 while Germany’s DAX fell 1.7 percent to 9,522. Tokyo’s Nikkei benchmark index was down by 2.8% at 17,155.85 points after tumbling to an eight-month low in early trading.
The euro edged up about 0.2 percent to $1.1264, pulling further away from a low of $1.1116 touched on Friday.
NEW YORK, Sept 28 (Reuters) – The dollar eased on Monday as the yen rallied amid drooping global stock prices and anxiety over potentially market-rattling economic data due this week from China and the United States.
“If you look at Japan… its economy is in bad shape”.
The dollar index was last off 0.07 percent after trading ahead before US data showed an unexpected decline during August of contracts to buy previously owned USA homes.
“The slowdown in China is spreading to other Asian economies, Brazil and Australia, and weakness in emerging countries could echo throughout the overall world economy”, Toshihiko Matsuno, chief strategist at SMBC Friend Securities, told Bloomberg News.
In Japan, shares of Kobe Steel fell 11% after the Japanese steelmaker cut its profit views citing slower demand in China and lower metal prices.
THE DRUGS DON’T WORK: A sell-off in drugmakers extended into a second week.
Singapore-listed commodities trader Noble Group Ltd. fell as much as 14.6%, its lowest since 2008. The sector – a recent favorite of investors – slumped last week after Democratic presidential candidate Hillary Rodman Clinton announced a plan to tackle rising drug costs.
Alcoa bucked the downward trend, gaining 3 percent after saying it would split in two. Its bauxite, aluminum and casting operations will be in one company and its engineering and transportation businesses will be in another.
RATES OUTLOOK: In addition to concerns about the outlook for growth in China, investors have also been anxious about US interest rates.
On Wall Street on Monday, major indexes all closed sharply down.
The news hammered London-listed mining giant Glencore, which plunged 27.5 per cent Tuesday after online brokerage Investec warned about the impact of soft commodity prices on the group as China’s struggles hit demand for raw materials.
The global equity selloff showed no signs of abating in Asia, with regional stocks sliding toward an nearly three-year low amid a commodity rout fueled by mounting concerns over China. The investigation will concentrate on the suspicion of fraud committed through the sale of vehicles with manipulated emissions data, and aims to determine who was responsible, prosecutors in Braunschweig said in a statement. The FTSE 100 index of leading British shares was 2.5 percent lower.
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US non-farm payrolls on Friday could add more clarity to the timing of a USA policy move, and prop up the sagging greenback.
