The dollar rose against a basket of major currencies and consolidated close to a 10-week high after data showed that US economic growth slowed less than expected, and global economic outlook deteriorated.
The US currency found support as investors demand riskier assets weakened against the backdrop of a sharp drop in global stock markets. Anxiety about the decline in corporate revenues and global growth, as well as, the growth of geopolitical uncertainty intensified among participants in the foreign exchange market. The movements of the US stock market are now the main indicator of movement in the foreign exchange market, and so far everything plays for the benefit of the dollar.
Amid a trade dispute with China, the United States is in a winning position. The steady pace of the rate increases by the Fed support the dollar, which serves as a safe haven in times of economic stress. The strong US economy has also strengthened the dollar, although weak corporate earnings raise doubts about the prospects for further growth, especially against the background of increasing borrowing costs.
The euro was less fortunate as the week began with a fall. In general, the currency lost 1.8 percent this month amid budget disputes between Brussels and Rome. At the same time, it is worth noting the activity of some traders who began to buy more risky currencies of emerging markets. The cost of which collapsed earlier this year. Usually when financial markets all over the world decline, currencies of developing countries are sold. Now some currencies that have lost the most this year, such as the Brazilian real and the Turkish lira, are being redeemed.
