Horrible! USD Strength Scares Other Currencies

thecekodok

 The US dollar regained momentum to continue strengthening as markets entered the European session and continued to sink most major currencies to the bottom of the ocean.


For the first time since May 2002, the dollar index, which measures the strength of the greenback, hit a fresh 20-year high of 112.00 against a basket of major currencies.


Markets in the European session saw a continued slowdown in manufacturing and services activity in the European Zone and the UK in September which was dampened by a drop in demand and high costs.


This grim news has added to the woes of the euro and the pound which were already affected by the stronger US dollar trading.



Under pressure, the euro sank to a new 20-year low, while the pound hit a new 37-year low against the greenback.


Meanwhile, the yen faltered again as the US dollar rose in the European session, forcing it to erase some of the gains made after Japan's announced intervention on Thursday.


On the other hand, the Aussie and New Zealand dollars also declined to the lowest level in more than two years after being affected by the strengthening of the US dollar.


Now, the next focus for investors is the release of the US services and manufacturing report and Canada's retail sales data.

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