The euro briefly rebounded back above parity with the dollar on Thursday as the US currency's recent rally ran out of steam
China's yuan weakened to a two-year low, while sterling briefly touched its weakest since March 2020.
The S&P flash composite PMI, which tracks manufacturing and services, showed that a downturn in Germany, Europe's biggest economy, deepened in August due to high inflation and rising interest rates.
Heatwaves in the continent have already put a strain on energy supplies and worries are growing that any disruption during winter months could be devastating for business activity
China's yuan dropped to its lowest in nearly two years after the central bank cut key lending rates.
The safe-haven U.S. dollar hovered near a one-week high on Tuesday while the Aussie, euro and Chinese yuan remained under pressure as weak global economic data reignited recession fears.
"Europe is far more vulnerable at this stage, so it's reasonable to assume that the central and eastern currencies will underperform, especially if euro-dollar falls," said Piotr Matys
The U.S. dollar index, which measures the greenback against a basket of currencies, was up 0.22% to 105.93, after sliding 0.68% on Thursday, the largest fall since July 19.
Inflation in the European countries using the euro currency shot up to another record in July, pushed by higher energy prices driven partly by Russia's war in Ukraine. Annual inflation in the eurozone's 19 countries rose to 8.9% in July, an increase from 8.6% in June, according to the latest numbers published Friday by the European Union statistics agency. Inflation has been running at its highest level since 1997, when record-keeping for the euro began. Energy prices surged by 39.7%, while food prices rose by 9.8% and other goods by 4.5%.
Euro nursed losses on Wednesday after its sharpest drop in two weeks, as a cut in Russian gas supply sent energy prices soaring, while the dollar held ground ahead of an expected Fed hike.
He added that unlike earlier crises, the depreciation of the rupee against the US dollar was lower than other major global currencies such as the Swiss Franc, the Euro, the British pound and the Yen
NEW YORK (Reuters) -The U.S. dollar edged lower against the euro on Wednesday in a choppy session, but its losses were capped as traders were hesitant to drive big moves ahead of a crucial European Central Bank policy decision on Thursday.
Exchange rate of the rupee fell to Rs 79 per US dollar this week. Rupee also strengthened against G10 currencies like euro, yen and pound sterling. Find out the virtues and vices of depreciating rupee
The Indian currency, he said, has appreciated against several global currencies like British Pound, Japanese Yen and Euro.
The euro rose to as high as $1.0254, up 1.1% on the day and its strongest since July 6 as money markets priced in a 60% chance of a 50 basis point hike on Thursday, up from 25% on Monday.
The comments late last week knocked the dollar off two-decade highs and boosted global stocks and non-dollar currencies, especially the euro.
The greenback has soared this year thanks to a combination of rising US interest rates and wobbling economies in Europe and China
Companies will have to buy fewer dollars to repay euro debt
Heightened global uncertainty and an aggressive Fed monetary policy stance have benefited the safe-haven dollar
LONDON (Reuters) - Stocks slipped on Wednesday and the euro lurked just above parity against the dollar, as traders waited to see if U.S. inflation data later bolsters the case for another supersized Federal Reserve rate hike this month.