The euro rose on Friday, as the dollar fell on concerns about the strength of the US economic recovery after job data that came below expectations, while the Chinese yuan rose to its highest level in seven months as traders bet on Chinas growth.
Traders in the single European currency are preparing for the PMI data for the manufacturing industries and services sectors in the euro zone for August, due out by 0800 GMT, which will shed light on how the region’s economy is doing with the easing of lockdown measures.
Doubts have increased about the speed of the US economy, the largest in the world, to recover from the Corona virus, after a more than expected rise in weekly jobless claims in the United States and warnings from officials at the Federal Reserve (US Central Bank) about an employment recovery.
The euro was the biggest beneficiary, as it rose from below $ 1.12 in early July to over $ 1.19 this week.
The single European currency rose in recent trading 0.1 percent to $ 1.1867, after touching its highest level in more than two years at $ 1.1966 earlier in the week.
The dollar index, which tracks the performance of the greenback against a basket of competing currencies, fell slightly to 92.663. The index is heading for the ninth consecutive weekly decline.
The Chinese yuan was the most prominent performer today, as it briefly reached 6.8935 in foreign market transactions, its strongest level since January 21.
The Chinese currency has compensated for all its losses since the Chinese city of Wuhan, where the Corona virus first broke out, has undergone general isolation measures as investors bet on a strong recovery of the country’s economy.
The British pound generally benefited from the weak dollar, moving up towards $ 1.3250. The British currency rose in recent trading 0.2 percent to $ 1.3238, while it rose slightly against the euro to 89.65 pence.
Elsewhere, currency movements were limited. The dollar fell 0.2 percent against the Japanese yen, to 105.59.
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