Dollar rises amid concerns about China’s growth

The dollar rose to a one-week high on Tuesday, August 16, after weak data on the global economy, particularly in China, raised fears of a recession and cast a shadow over currencies such as the Australian dollar.

The dollar index, which measures the greenback’s performance against a basket of currencies, reached its highest level at 106.81 in early European trading, recovering all of its losses from last week when less-than-expected US inflation data made investors refrain from the dollar and return to risk-friendly assets.

The dollar index rose 0.12% to 106.6 points.

The Australian dollar fell 0.44% to $0.699 on Tuesday, falling under the $0.7 level.

The Chinese yuan recorded 6.84146 against the US dollar, the lowest level last seen in mid-May.

The euro fell 0.18% to $1.0142, and the pound sterling, which was last traded at $1.2026, fell 0.23% on the day, and the Japanese yen fell 0.3% against the dollar.