Investing.com - The U.S. dollar was higher against most of its major counterparts on Thursday, as concerns over the effects of the deepening debt crisis in the euro zone kept safe haven demand for the greenback well supported.
During European morning trade, the dollar was trading close to a 22-month high against the euro, with EUR/USD shedding 0.30% to hit 1.2544.
The euro weakened broadly after data showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
A separate report showed that Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
The greenback advanced to a two-and-a-half month high against the pound, with GBP/USD down 0.19% to hit 1.5661.
Data from the U.K. showed that the U.K. economy contracted by 0.3% in the three months to March, more than preliminary estimated for a 0.2% contraction.
Elsewhere, the greenback was slightly lower against the yen, with USD/JPY slipping 0.12% to hit 79.39, but pushed higher against the Swiss franc, with USD/CHF rising 0.26% to hit 0.9570.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.20% to hit 1.0273, AUD/USD losing 0.15% to hit 0.9571 and NZD/USD dipping 0.03% to hit 0.7495.
In New Zealand, official data showed that the country’s trade surplus widened less-than-expected in April, rising to NZD355 million from NZD186 million the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28%, to trade at 82.40.
Later Thursday, the U.S. was to release official data on core durable goods orders and initial jobless claims.
During European morning trade, the dollar was trading close to a 22-month high against the euro, with EUR/USD shedding 0.30% to hit 1.2544.
The euro weakened broadly after data showed that manufacturing activity in the euro area contracted at the fastest pace since June 2009 in May, while service sector activity shrank at the steepest pace in seven months.
A separate report showed that Germany manufacturing activity slowed to the lowest level in almost three years in May, sparking fresh fears over the impact of the euro zone debt crisis on the region’s largest economy.
Market participants also remained risk adverse after Wednesday’s summit of European Union leaders made little signs of progress in tackling the debt crisis in the region.
Leaders reiterated that they want Greece to remain in the euro area, but urged the country to honor its commitments to austerity measures and the reforms demanded under its bailout program.
The greenback advanced to a two-and-a-half month high against the pound, with GBP/USD down 0.19% to hit 1.5661.
Data from the U.K. showed that the U.K. economy contracted by 0.3% in the three months to March, more than preliminary estimated for a 0.2% contraction.
Elsewhere, the greenback was slightly lower against the yen, with USD/JPY slipping 0.12% to hit 79.39, but pushed higher against the Swiss franc, with USD/CHF rising 0.26% to hit 0.9570.
The greenback was broadly higher against its Canadian, Australian and New Zealand counterparts, with USD/CAD climbing 0.20% to hit 1.0273, AUD/USD losing 0.15% to hit 0.9571 and NZD/USD dipping 0.03% to hit 0.7495.
In New Zealand, official data showed that the country’s trade surplus widened less-than-expected in April, rising to NZD355 million from NZD186 million the previous month.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.28%, to trade at 82.40.
Later Thursday, the U.S. was to release official data on core durable goods orders and initial jobless claims.