US dollar rallies amid concerns over slowdown in euro zone

The US dollar extended gains against most other major currencies as the euro was largely weighed down by concerns over potential economic growth slowdown in the euro zone.

In late New York trading on Friday, the euro decreased to $1.1329 from $1.1405 in the previous session, and the British pound decreased to $1.2808 from $1.2876 in the previous session, Xinhua news agency reported.

The Australian dollar was down to $0.7226 from $0.7253.

The US dollar bought 112.88 Japanese yen, lower than 112.95 Japanese yen of the previous session. The US dollar rose to 0.9974 Swiss franc from 0.9943 Swiss franc, and it was up to 1.3230 Canadian dollars from 1.3195 Canadian dollars.

Purchasing Managers Index surveys of German and the euro zone appeared weaker than expected, dragging down the euro, according to Reuters.

Analysts said the downbeat data would raise doubts over whether the European economy would rebound for the remainder of the year.

Besides, oil prices on Friday slumped to the lowest level in more than a year, with US crude settling at a new low of $50.42 a barrel for nearly two months. Analysts said the plunge spurred more risk aversion among investors, adding value to the dollar as a safe-haven currency.

--IANS

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