Thursday saw the world's reserve currency increase against its counterparts after weak economic data in the U.S., China and Europe prompted preoccupations about global health concerns and pushed investors toward the safety offered by the greenback, Reuters reports.
The U.S. endured its weakest quarter for manufacturing in three years, the economy of China continued slowing, and settings for business in Europe continued suffering the consequences of the sovereign debt crisis.
"I think euro/dollar will form a base to the extent this weakness is about global risk appetite which is backstopped by the Fed, and we think Spain will eventually ask for a bailout," FX strategy head Adam Cole with RBC Capital Markets in London told Reuters. "I would be surprised if we get back down below $1.28."
The Asian nation, host of the globe's second-largest economy, saw reduced manufacturing for an 11th straight month, according to a private sector survey.
Spain on Thursday conducted a successful auction of debt, which might cancel or postpone the nation's pursuit of bailout aid for its debt-hobbled banks, according to MarketWatch.
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