Investing.com – The U.S. dollar rallied against almost all of its major counterparts on Thursday, as concerns over the outlook for global growth intensified, leading investors to shun riskier assets.
During U.S. morning trade, the greenback was up against the euro, with EUR/USD tumbling 0.81% to hit 1.3461.
Risk appetite crumbled after the Federal Reserve warned of “significant downside risks” facing the U.S. economy after its policy meeting on Wednesday and announced fresh measures to boost growth.
The central bank unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
Earlier in the day, data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the euro zone slumped to the lowest since August 2009.
A separate report showed that euro zone factory orders fell more-than-expected in July.
The data came after a report showed that Chinese factory output fell for a third consecutive month in September, adding to fears over a slowdown in global growth.
The greenback was also higher against the pound, with GBP/USD falling 0.91% to hit 1.5352.
Elsewhere, the greenback was down against the yen but advanced against the Swiss franc, with USD/JPY sliding 0.22% to hit 76.28 and USD/CHF climbing 0.77% to hit 0.9069.
Earlier Thursday, the ZEW Centre for European Economic Research said its index of Swiss economic sentiment fell for the fifth consecutive month in September, as a strong Swiss franc and concerns over the euro zone’s sovereign debt crisis weighed.
The greenback also posted large gains against its Canadian, Australian and New Zealand counterparts, with USD/CAD rallying 1.98% to hit 1.0275, AUD/USD tumbling 2.38% to hit 0.9805 and NZD/USD plunging 2.48% to hit 0.7811.
Earlier in the day, official data showed that Canadian retail sales fell more-than-expected in July, while core retail sales were unexpectedly flat.
Another report showed that New Zealand’s economy grew less-than-expected in the second quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.72% to hit an eight-month high of 79.00.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 9,000 to 423,000, falling short of expectations for a decline to 420,000.
During U.S. morning trade, the greenback was up against the euro, with EUR/USD tumbling 0.81% to hit 1.3461.
Risk appetite crumbled after the Federal Reserve warned of “significant downside risks” facing the U.S. economy after its policy meeting on Wednesday and announced fresh measures to boost growth.
The central bank unveiled a plan to trade short-term bonds for long-term ones, in an attempt to boost the economy by pushing down long-term interest rates, a move dubbed “Operation Twist.”
Earlier in the day, data showed that German manufacturing output fell to a 24-month low in September, while manufacturing activity in the euro zone slumped to the lowest since August 2009.
A separate report showed that euro zone factory orders fell more-than-expected in July.
The data came after a report showed that Chinese factory output fell for a third consecutive month in September, adding to fears over a slowdown in global growth.
The greenback was also higher against the pound, with GBP/USD falling 0.91% to hit 1.5352.
Elsewhere, the greenback was down against the yen but advanced against the Swiss franc, with USD/JPY sliding 0.22% to hit 76.28 and USD/CHF climbing 0.77% to hit 0.9069.
Earlier Thursday, the ZEW Centre for European Economic Research said its index of Swiss economic sentiment fell for the fifth consecutive month in September, as a strong Swiss franc and concerns over the euro zone’s sovereign debt crisis weighed.
The greenback also posted large gains against its Canadian, Australian and New Zealand counterparts, with USD/CAD rallying 1.98% to hit 1.0275, AUD/USD tumbling 2.38% to hit 0.9805 and NZD/USD plunging 2.48% to hit 0.7811.
Earlier in the day, official data showed that Canadian retail sales fell more-than-expected in July, while core retail sales were unexpectedly flat.
Another report showed that New Zealand’s economy grew less-than-expected in the second quarter.
The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.72% to hit an eight-month high of 79.00.
Also Thursday, the U.S. Department of Labor said the number of individuals filing for initial jobless benefits last week fell by 9,000 to 423,000, falling short of expectations for a decline to 420,000.