The US dollar gained on Monday against its major rivals as investors shifted their focus towards the safe haven status of the greenback in reaction of reduced China’s economic growth outlook and meeting of finance ministers from European Countries.

The dollar index DXY which measures the US dollar’s performance versus the basket for six major counterparts advanced to 79.595 on Monday as compared to 79.350 on Friday’s North American trading session. The euro fell to 1.2973 against the US dollar on Monday as compared to 1.3031 on Friday’s late trading hours. If we look at the performance of the euro, the single currency climbed 1.3 percent in last week against the US dollar.

Forex pundits were of the opinion that the euro had a strong last week and correction was overdue. Investors have realized profits ahead of next event which probably could be Spain going for additional rescue funds. Traders were also waiting for Greece’s report from its creditors showing progress of the country in meeting its bailout requirements. In Monday’s meeting of Finance managers, bailout fund of 500 billion euro equivalent to $649.8 billion was approved for European Stability Mechanism. However, investors were still mixed whether Spain will go for a bailout. Analysts foresee that Spain to avail rescue funds is a move which is inevitable.  Germany on the other hand supports Spanish government for not taking the assistance program. German Finance Minister Wolfgang Schauble commented, “The Spanish don’t need an assistance program. That is what the government says over and over again, and we should just trust the Spanish government.”

Among other currencies, the British Pound slipped to 1.6031 against the US dollar on Monday as compared to 1.6141 on Friday. Against the Japanese yen the US dollar traded at 78.32 as compared to 78.64 while the Australian dollar stood at 1.0177 versus the greenback on Monday as compared to 1.0176 on Friday’s session.

The single currency recovered on Thursday from its lowest in last two years. The International Monetary Fund was reported to explore the options for a bailout package for Spain which created hopes for investors. There was also news that IMF’s European department is planning for bailout package of $371 billion for Spain.

The euro gained to 12.4 against the US dollar but later settled to 1.2369 as compared to 1.2369 on Wednesday’s North American trading session. The single currency has declined 6.6 percent versus the US dollar in May. Yields on 10 year Spanish bonds declined 16.1 basis points to 6.537 percent.

The dollar index DXY which tracks the US dollar’s performance against its six major rival currencies fell to 83.035 on Thursday as compared to 83.053 on Wednesday’s late trading hours. The dollar index has gained almost 5 percent in the month of May which happens to be its best performance since September 2011.

Among other currencies, the British Pound plunged to 1.5416 against the US dollar as compared to 1.5488 while against the Japanese yen the greenback fell to 78.34 as compared to 79.09 in prior session. The pair GBP/USD has declined 5 percent in May while USD/JPY is down 2.4 percent.

The euro plunged on Wednesday crossed the level of 1.24 versus the US dollar on Wednesday on raise worries over the European debt crisis. The dollar index DXY which tracks the US dollar’s movement against the basked of 6 major rival currencies jumped to 83.053 on Wednesday as compared to 82.468 on Tuesday’s North American trading session.

The euro declined to 1.2360 against the US dollar on Wednesday as compared to 1.2493 on Tuesday’s North American trading session. The pair EUR/USD last reached as level lower than $1.24 bank in June 2010. Analysts think that the next support level for the pair EUR/USD stands at 1.20.

Euro fell mainly on reduced rating of Spain to B from BB- while the European Central Bank also turned down Spain’s proposal to recapitalize its one of major banks the Bankia SA. Yields on 10-year Spanish bond gained to 6.685 percent reporting the increase of 22 basis points. The yield on Spanish debt has reached their highest level since inception of the single currency which raised many concerns.

Research director, Kathleen Brooks from Forex.com commented, “There is an air of inevitability about Spain, similar to what happened with Ireland and Portugal, when the rise in their bond yields seemed unstoppable, The situation in Spain is getting ugly, a bailout could cost upwards of 380 billion euros, and we don’t even know if Germany is willing to provide this sort of cash, especially since it seems unlikely that Greece and Ireland will be able to return to the capital markets next year for financing.”

Among other currencies, the British Pound declined to 1.5488 against the US dollar on Wednesday as compared to 1.5640 on late Tuesday. Against the Japanese yen, the US dollar fell to 79.09 on Wednesday as compared to 79.49 on Tuesday’s session.

The euro fell to its lowest in 22 months versus the greenback on Thursday as the European purchasing managers’ index declined in month of May indicating reduction in private sector activity on highest pace since mid 2009. Moreover, Germany’s business climate index from Ifo Institute also fell to its lowest in six months.

Analysts think that keeping in view the updated economic data the improvement in euro zone’s first quarter’s gross domestic product does not seem that promising. Analysts also foresee that the single currency remain lower in coming sessions too and would recover after series of bearish sessions.

The euro fell to 1.2539 against the US dollar on Thursday as compared to 1.2578 on Wednesday’s North American trading session. The euro however gained against the Swiss franc to 1.2076 on the rumor that Swiss government will begin taxing deposits.

The dollar index DXY which measures the US dollar’s performance against its six major counterpart currencies gained to 82.342 as compared to 82.073 on Wednesday’s late trading hours. This was also the highest since 2010 for the dollar index.

Among other currencies, the British Pound declined 1.5664 against the US dollar compared to 1.5698 on prior trading session. The British Pound was lower in reaction to lowered forecasted GDP estimate which was updated to decrease of 0.3 percent as compared to earlier projected decline of 0.2 percent.

Against the Japanese yen, the greenback gained to 79.63 as compared to 79.49.

The single currency reached its lowest level since July 2010 in reaction to escalating worries over the potential exits of Greece from the euro zone. Investors were looking up to the ongoing meeting of the European Leaders and it was rumored that each European country discussed a contingency plan in case the Greece is excluded from the European Union.

On the other hand, Greece’s Ex-Prime Minister, Lucas Papademos said in an interview at Dow Jones Newswire that the consequences would be substantial if Greece is excluded from the European Union.

The euro declined to 1.2544 against the US dollar on Wednesday as compared to 1.2578 on Tuesday’s North American trading session. It was lowest for the pair EUR/USD since July 2010 as the single currency has never touched below $1.26 level since then.

The ICE dollar index DXY which measures the US dollar’s performance against its six rival currencies gained to 82.073 on Wednesday as compared to 81.674 on Tuesday’s late trading hours.

Among other currencies, the Japanese yen recovered versus the US dollar as the Bank of Japan kept the interest rates unchanged and showed no intentions to change its quantitative easing program. The central bank maintained the status quo in its policies despite the political pressures to boost growth and reduce inflation. Against the Japanese yen, the US dollar declined to 79.49 on Wednesday as compared to 79.96 on late Tuesday.

The British Pound fell against the greenback to 1.5698 on Wednesday as compared to 1.5754 on Tuesday. The minutes of latest Bank of England’s monetary policy meeting showed that majority of members voted to makes no changes in the central bank’s bond buying program.

It seems that events are in moving in favor the greenback. The US dollar surged to its highest level since the month of January versus its major rivals mainly driven by substantial fall of Japanese yen. The Japanese yen plunged on Tuesday in reaction to Fitch’s reduced rating for Japan which was decreased to A+ from AA. However many analysts are the opinion that Fitch ratings won’t have any substantial impact on the Japanese yen. Head of G-10 FX strategy, Adam Cole from RBC Capital Markets commented, “With the [Japanese government bond] market almost wholly domestically owned, the ratings agencies are largely irrelevant for the Japanese yen.”

Moreover, the euro also further weakened after comments of Greece’s former prime minister who said that if Greece leaves the euro zone the economic impact on the euro zone would be substantial.

The dollar index DXY which measures the US dollar’s performance against the basket of its six major counterparts gained to 81.674 on Tuesday as compared to 80.970 on Monday’s North American trading session. Against the Japanese yen the US dollar surged to 79.96 on Tuesday as compared to 79.30 on late Monday.

The single currency fell to 1.2688 against the US dollar on Tuesday as compared to 1.2811 on Monday’s late trading hours. The euro fell 0.3 percent against the Japanese yen to 101.38.

Among other currencies, the British Pound fell to 1.5754 versus the greenback as compared to 1.5829 on late Monday. The British Pound declined in reaction to decrease in UK’s inflation as the consumer price index stood at 3 percent in April as compared to 3.5 percent in March while analysts were expecting the reading of 3 percent. Many analysts were doubtful now that whether the current economic data would clear the way for Bank of England’s quantitative easing program.