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 declined on Thursday against its major counterparts as investors were concerned about the euro zone’s debt situation in reaction to the turmoil in Spanish bond market. The sharp rise in yields of the Italian and Spanish bonds created fears amongst the currency traders that ECB would go for massive monetary policy operations.

Yield on the 10-year Spanish bond gained to 5.78 percent which happens to be its highest since December 2011. The yield premium which to hold the Spanish bonds over German’s 10 year bunds differentiated with 4.03 percentage points. This premium is taken as measure of risk associated with Spanish bonds. Yield on 10-year Italian bonds gained to 5.54 percent.

The euro declined to 1.3060 on Thursday as compared to 1.3139 on Wednesday’s North American trading session. The euro slipped 0.7 percent versus the Japanese yen to 107.62. The single currency fell 0.1 percent to 1.2022 against the Swiss franc.

On contrary to the euro, lots of positive news surrounded the US dollar as the weekly jobless claims in United States fell to 357,000 which are lowest since April 2008.

The dollar index DXY which tracks the US dollar movements against its major counterpart currencies advanced to 80.101 on Thursday as compared to 79.764 on Wednesday’s late trading hours.

The British Pound declined to 1.5829 on Thursday as compared to 1.5890 on late Wednesday. Against the Japanese yen the US dollar fell to 82.42 on Thursday as compared to 82.57 on Wednesday’s late trading hours.

The US dollar gained versus its major rivals on Tuesday as the weaker than expected US economic data made investors to shift their focus towards safe haven status of treasury bonds and the greenback instead of investing in stock markets. The euro also declined which was trading much higher in Asian trading session.

Data on US home prices and manufacturing data and consumer confidence in Chicago area came in worse than expected by analysts. Yields on 5-year and 2-year US Treasury bonds fell to record low in reaction to weak economic data.

The dollar index DXY which measure the US dollar’s performance versus its six major counterpart currencies gained to 79.278 on Tuesday as compared to 79.220 on Monday’s North American trading session.

The euro exchange rate fell to 1.3086 versus the greenback on Tuesday as compared to 1.3117 on Monday’s late trading hours. The euro have been moving on much stronger pattern as most of the European Union Member countries except Britain and Czech Republic supported the new fiscal compact. The euro also fell 0.1 percent versus the Swiss franc on Tuesday.

Among other forex, the British Pound gained to 1.5762 against the greenback on Tuesday as compared to 1.5701 on late Monday while the US dollar declined 0.4 percent versus the Swiss franc to 92.05 centimes. Against the Japanese yen the US dollar fell to 76.21 on Tuesday as compared to 76.31 on late Monday.

The single currency strengthens as the investors got relived on announcement of Fitch to keep China’s France’s credit rating unchanged at AAA. Many analysts believe that this could result in easing of monetary policy by central banks of respective countries.

Currency analyst, David Song from DailyFX commented, “Although Fitch Ratings fired warning shots against Italy, the group said it expects France to maintain its AAA credit rating, which certainly helped to prop up the euro, although Fitch Ratings fired warning shots against Italy, the group said it expects France to maintain its AAA credit rating, which certainly helped to prop up the euro.”

The euro surged to 1.2778 against the US dollar on Tuesday as compared to 1.2765 on Monday’s late trading hours. The Swiss franc fell versus the euro to 1.2138.

The dollar index DXY which tracks the US dollar’s movement against its six main counterpart currencies fell to 80.864 on Tuesday as compared to 81.001 on Monday’s North American trading session.

Among other currencies, the Australian dollar also surged 0.4 percent versus the US dollar to 1.0306 while New Zealand dollar gained 0.7 percent to 79.42 against the greenback. The US dollar however remained strong versus the Swiss franc at 94.99 centimes.

The British Pound gained to 1.5488 against the US dollar as compared to 1.5457 on late Monday. Against the Japanese yen the US dollar slightly fell to 76.83 as compared to 79.87 on Monday.

US dollar remained under pressure on Wednesday against its major counterparts in reaction to the move of global central banks for reduction in their borrowing costs.

The single currency gained to 1.3446 against the US dollar on Wednesday as compared to 1.3329 on Tuesday’s late trading hours. The euro touched its intraday high of 1.3532 which also happens to be highest in last two weeks.

US Federal Reserve, ECB, the Bank of England, the Bank of Japan, Swiss National Bank and Bank of Canada decided to extend their credit swap lines to enhance the borrowing of other banks in lower cost. This step contributed a lot in easing in financial markets.

Senior currency strategist, David Watt from RBC Capital Markets commented, “The problem has been that traders have been attaching a stigma to banks that have to access central bank funding, making firms reluctant to use the option even though it’s been cheaper than the market-based rates, ” he further added, “Central banks are hoping the rate is so attractive that hitting the swap line makes business sense as opposed to signaling vulnerability, They hope if they draw enough institutions, the stigma will decline, stresses on the liquidity front will ease and that will ease some of the bearish demeanor towards the euro.”

The dollar index DXY which measures the greenback’s performance versus its six major rival currencies declined to 78.345 on Wednesday as compared to 78.990 on Tuesday’s North American Trading Session.

The US dollar fell to 77.53 versus the Japanese Yen on Wednesday as compared to 77.85 on late Tuesday. The greenback also declined 1.3 percent versus the Canadian dollar while slipped 1 percent against the Swiss franc.

The British Pound surged to 1.5703 against the US dollar on Wednesday as compared to 1.5610 on Tuesday’s late trading hours.

The euro strengthened on Tuesday after the news of resignation of Italian Prime Minister Silvio Berlusconi after the budget of 2012. The euro gained to 1.3836 against the US dollar on Tuesday as compared to 1.3771 on Monday’s late trading hours. The euro however declined 0.4 percent against the Swiss franc on Tuesday to 1.2380.

In reaction to Berlusconi resignation, the 10-year Italian bond yield increased to 6.69 percent from 6.52 percent which also happens to be record yields since the inception of 17-nations shared currency. Director of currency research held a different opinion and commented, “The rise in Italian 10-year bond yields confirm that investors are not pleased with the outcome of today’s vote,” on impact of higher gap in German bunds on Italian bonds she added, “Would be extremely bad for Italy because investors could just end up dumping the bonds rather than put up more margin.”

The US dollar also remained under pressure against its other counterparts as the dollar index DXY which measures the greenback’s performance against is six major rival currencies declined to 76.620 on Tuesday as compared to 76.984 on Monday’s North American trading session.

The British Pound gained to 1.6115 against the US dollar on Tuesday as compared to 1.6053 on late Monday. Against the Japanese yen, the greenback also fell to 77.71 as compared to 78.07 on Monday’s late trading hours.