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 euro gained against the US dollar on Wednesday as the gossip regarding the huge bond purchases by the European Central Bank created upbeat sentiments for the single currency. The euro gained to 1.2596 against the US dollar on Wednesday as compared to 1.2568 on Tuesday’s North American trading session. The pair EUR/USD touched the intraday high of 1.2624.

The euro fell to its lowest in last five weeks on Thursday as the European Central Bank announced reduction in key interest rate while the Bank of England decided to go for more monetary stimulus measures. Investors were hoping that the ECB would increase its bond purchases but an opposite decision was announced which created panic among investors for the single currency.

The People’s Bank of China also announced additional quantitative easing measures. Senior currency strategist, Michael Woolfolk from the Bank of New York Mellon commented, “Following this morning’s actions by the ECB and the BOE, it is difficult not to be bullish on the near-term prospects for the U.S. dollar amid ongoing crisis in Europe.”

The dollar index DXY which tracks the greenback’s movement against its major six rival currencies gained to 82.826 on Thursday as compared to 82.132 on Wednesday’s North American trading session.

The euro gained on Wednesday in reaction to the US Federal Reserve’s decision to extend its bond purchase program known as “Operation Twist” which comprises of selling short term securities and purchasing long term securities.

Though the US dollar declined versus the euro but was up versus its major rivals as the dollar index DXY which tracks the greenback’s performance versus its major six counterparts gained to 81.567 on Wednesday as compared to 81.365 in Tuesday’s North American trading session.

The euro jumped on Thursday versus its major rival the US dollar as the central banks are ready to provide liquidity for stabilization of financial system in case of any mayhem after the Greece’s elections due in this weekend.

The euro gained to 1.2613 against the US dollar on Thursday as compared to 1.2579 on Wednesday’s late trading hours.

The US dollar on the other hand remained under pressure in reaction to weak US economic data. The dollar index DXY which tracks the greenback’s movement against the basked of six major rival currencies declined to 81.917 on Thursday as compared to 82.126 on Wednesday’s North American trading 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.