LONDON, May 30 Reuters The U.S. dollar resumed its slide on Monday as risk appetite across markets tentatively strengthened, supported by encouraging economic data and bets that the Federal Reserve will tighten policy at a slower pace.

The dollar index which tracks the greenback against six major rivals is on track for its first monthly drop in five, as the safehaven currency loses steam after a breakneck start to the year.

The dollar index is on track for a morethan 1.5 drop in May although it remains up about 6 on the year. It was last down 0.2 on the day at 101.510.

Trade was likely to be light through Monday as U.S. stock and bond markets close for the Memorial Day public holiday.

Data on Friday showed that U.S. consumer spending rose more than expected in April as households boosted purchases of goods and services, and the rise in inflation slowed. 

Analysts said the encouraging data, coupled with bets on a more cautious tightening path by the Fed, was weakening the dollar.

World share markets rose on Monday as easing COVID19 restrictions and new stimulus in China helped sustain last week39;s rebound.

The offshoretraded Chinese yuan strengthened as much as 1 versus the dollar on the reopening news, and was last up 0.6 at 6.6802 yuan per dollar.

How the US consumer plays out from here and from a global perspective how the Chinese economy performs will be crucial determinants for broader investor risk appetite, currency analysts at MUFG said in a note.

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