The dollar rallied against the single currency yesterday after a run of disappointing manufacturing data left investors unwilling to take on risk.
- The single currency took a sharp downward turn, weighed down by comments from a top European official who expressed concern about the value of the euro.
- He said that European finance ministers would discuss the single currency’s recent appreciation at the G7 meeting this weekend.
- Waning risk appetite amid a mixed batch of US economic data also prompted investors to seek the perceived safety of the greenback.
- Data yesterday showed US initial jobless claims rose in the latest week, a reminder that the labour market is far from stable.
- Additionally, data showed that the eurozone unemployment rate rose to a ten year high of 9.6%, which undermined demand for the currency, bringing it to a two week low of 1.4527.