The dollar lost ground on Tuesday as riskier currencies rebounded on tentative hopes that lockdowns may be slowing the spread of the coronavirus in some countries.

Bets that the world’s biggest crude producers may cut supply to support oil prices also boosted market sentiment.

The greenback – the world’s reserve currency – has swung wildly in recent weeks in volatile trading. But action by central banks to ease a mad scramble for dollars has helped bring some calm to markets.

The dollar was last down 0.7% versus a basket of currencies, mirroring improved risk sentiment across equity markets, with European shares up for a second straight day.

Sterling also rallied, even as traders awaited news on the condition of British Prime Minister Boris Johnson, who is fighting worsening coronavirus symptoms in intensive care.