The U.S. economy reported the biggest contraction in 73 years in the second quarter following the effects of the Covid-19 outbreak, according to a report released by the U.S. government on Wednesday.
Gross Domestic Product (GDP) has fallen by 31.4% per annum in the second quarter of this year. This fall is the biggest drop since 1947, as reported by the Department of Commerce in its third-quarter GDP estimates report. Previously, GDP reported a fall of 31.7% in the second quarter.
However, the US dollar index, which measures the greenback dollar against six major currencies, traded strongly at 0.21% at 94.130 as of 09.00 p.m.
The strengthening of the US dollar was driven by positive data in the labor market, with reports today showing that the private sector recorded an increase in employment increases in September but government financial assistance was reduced, and Covid-19 positive cases increased for some parts of the U.S. state.
Private wage payments increased by 749,000 jobs this month as reported in the ADP report.
