The US dollar gained this week as concerns about global economic growth resulted in a huge sell-off of riskier assets and the greenback retained its strength for the most of the week even as the market sentiment improved.
Monday started with negative news from China, setting the mood for the rest of the week. The Chinese yuan managed to reach a record despite the news on speculations that the central bank may widen the trading range.
The downward revision of the global growth projections by the International Monetary Fund did not help the traders’ mood either. So did macroeconomic data from the United State, but for some reason it hurt the dollar, not helped the currency.
The yen did not profit from the resulting risk aversion as the Group of Twenty did not scold Japan on this week’s meeting for the practices of devaluing the Japanese currency.
EUR/USD dropped from 1.3113 to 1.3058. GBP/USD slid from 1.5339 to 1.5231. USD/JPY went to 99.48 up from the opening of 98.17 and the weekly low of 95.76.
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