* Dollar index languishes near recent 6-1/2 month low
* Sterling dips after poll shows slimmer lead for PM May
By Masayuki Kitano
SINGAPORE, June 1 The dollar languished near a
recent 6-1/2 month low against a basket of major currencies on
Thursday, while sterling slipped after a poll showed a slimmer
lead for Prime Minister Theresa May's ruling party before next
The latest YouGov poll for the Times on Wednesday showed
that May's Conservative Party is just 3 percentage point in
front of the opposition Labour Party ahead of Britain's June 8
That weighed on sterling, which slipped 0.1 percent to
The pound was just above a one-month low of $1.2770 set on
Wednesday, having regained some ground after two other surveys
showed May's poll lead in double digits, countering signs she
might fall short of a majority in next week's election.
The greenback licked its wounds, suffering its biggest
monthly drop in four months against a basket of six major rivals
in May, and its largest loss against the euro in more than a
The euro eased 0.1 percent to $1.1236. On Wednesday,
the euro had risen 0.5 percent, bringing it back near last
week's 6-1/2 month high of $1.1268.
A drop in U.S. bond yields on Wednesday pressured the
dollar, said Satoshi Okagawa, senior global markets analyst for
Sumitomo Mitsui Banking Corporation in Singapore.
"U.S. longer-term bond yields fell and that led to some
broad selling of the dollar," Okagawa said.
Currently, futures markets are pricing in a roughly 90
percent chance the Federal Reserve will raise rates by 25 basis
points in June, but much could change depending on economic data
in the run-up to that meeting, most notably Friday's jobs
The dollar index, which measures the greenback's value
against a basket of six major currencies, last traded at 97.035
, not very far from its May 22 trough of 96.797, which was
the lowest since Nov. 9.
In May, the dollar index fell 2.1 percent, its biggest
monthly drop since January.
Investors have been fretting that investigations into U.S.
President Donald Trump's ties with Russia could hamper his
administration's progress on tax cuts and other promised
stimulus measures, concerns which have weighed on the
dollar in recent weeks.
The dollar edged up 0.1 percent against the yen to 110.95
(Reporting by Masayuki Kitano; Editing by Shri Navaratnam)