The U.S. dollar climbed higher on Tuesday, buoyed by the continued weakness of the euro and Chinese yuan, as mixed economic signals weighed on other major currencies. The dollar index remained near a one-week high of 104.68, reflecting investor preference for the greenback amid growing concerns about global economic stability.
The euro fell to $1.0473, retreating after a brief recovery fueled by robust German data. Lingering worries about eurozone growth and the European Central Bank’s cautious monetary stance kept pressure on the currency. Meanwhile, the yuan weakened in offshore markets, trading near its lowest level since September. Sluggish Chinese economic activity and disappointing manufacturing data added to concerns about Beijing’s ability to support growth, further benefiting the dollar.
Despite hints of risk appetite in equity markets, the dollar’s resilience underscores its role as a safe-haven asset, especially as central banks signal divergent approaches to monetary policy. Analysts suggest the dollar could retain its strength in the short term if global growth fears persist.
