Euro is winning as Dollar falters on Economic Concerns

The euro rose as the dollar fell due to concerns about the strength of the US economic recovery after job data that came below expectations, while the Chinese yuan rose to its highest level in seven months as traders bet on China’s growth.

Traders in the single European currency are preparing for the PMI data for the manufacturing industries and services sectors in the euro area for August, due for release today, which will shed light on how the region’s economy is doing along with the easing of lockdown measures.

Doubts have increased about the speed of the US economy, the largest in the world, from the Coronavirus, after a more than expected rise in weekly jobless claims in the United States and warnings from officials at the Federal Reserve (US Central Bank) about an employment recovery.

The euro was the biggest beneficiary, as it rose from below $ 1.12 in early July to over $ 1.19 this week.

The single European currency rose in recent trading 0.1% to $ 1.1867, after touching the highest level in more than two years at $ 1.1966 earlier in the week.

The dollar index, which tracks the performance of the greenback against a basket of competing currencies, fell slightly to 92.663.

The index is heading for the ninth consecutive weekly decline.