Image: Reuters Berita 24 English - The U.S. dollar , which is seen as a safe haven, hovered near a one-week high on Tuesday, while the Auss...
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| Image: Reuters |
Berita 24 English - The U.S. dollar, which is seen as a safe haven, hovered near a one-week high on Tuesday, while the Aussie, euro, and Chinese yuan stayed weak as weak global economic data reignited fears of a recession.
The dollar index, which compares the dollar to six major currencies, stayed the same at 106.51, just below the session's high of 106.55, which was the highest since Monday of last week.
At $1.0158, there wasn't much change in the euro, which is the most important currency in the dollar index. Earlier, it fell to its weakest level since August 5 at $1.0154.
At $1.2040, sterling was down 0.1%, which was the lowest since August 5.
The dollar fell by 0.09 percent to 133.19 yen, which is a safe haven currency.
A number of bad signs about the world economy drove the rush to safety. Monday, data showed that the confidence of U.S. single-family homebuilders and factory activity in New York state fell to their lowest levels since the beginning of the COVID-19 pandemic.
This happened after China's industrial output, retail sales, and investments in fixed assets were all weaker than expected. This happened as the slow recovery from the harsh COVID-19 lockdowns slowed.
The dollar went up 0.07% against the offshore yuan to 6.8174, moving back toward Monday's high of 6.8200, which hasn't been seen since mid-May.
The Australian dollar fell as low as $0.70005, putting it in danger of being worth less than 70 cents for the first time since Wednesday.
The New Zealand dollar fell to $0.6349, which is also the lowest it has been since Wednesday.
Most people think that the Reserve Bank of New Zealand will raise rates by another half point on Wednesday. The focus will be on whether policymakers will follow the Federal Reserve and the Reserve Bank of Australia and move to a more data-driven approach.
In a note to clients, Commonwealth Bank of Australia strategist Joseph Capurso said, "Weakness in the U.S. and Chinese economies is usually a bad sign for commodity currencies." These include the Aussie and the kiwi.
"The easiest way for NZD to move is down until tomorrow's meeting of the Reserve Bank of New Zealand."
