There is bad news in the US, so the dollar is rising
The safe-haven US dollar hovered near a weekly high on Tuesday, while the Australian dollar, euro and Chinese yuan remained under pressure as weak global economic data fueled recession fears.
The dollar index, which measures the dollar against six major currencies, remained steady at 106.51, just below the previous session’s peak of 106.55, the strongest since Monday last week.
The euro, the most heavily weighted currency in the dollar index, was virtually unchanged at $1.0158 after falling to its lowest level since August 5 at 1.0154.
The pound sterling slipped 0.1% to $1.2040, its lowest level since August 5.
Against the yen, the safe-haven currency in high demand, the dollar slipped 0.09% to 133.19.
The bet on global security was due to a number of weak world economic indicators. On Monday, data showed that confidence in U.S. single-family home builders and manufacturing activity in New York State fell in August to their lowest levels since the start of the COVID-19 pandemic.
This follows unexpectedly weak Chinese activity data covering industrial production, retail sales and fixed investment as the nascent recovery from the draconian COVID-19 lockdowns faltered.
Against the offshore yuan, the dollar edged up 0.07% to 6.8174, returning to Monday’s high of 6.8200, the last since mid-May.