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.

US dollar fell on Thursday as the US stock markets rallied in reaction to better than expected US economic data. This reduced the appeal of the US dollar as a safe haven and investors shifted their focus towards the equities. US pending home sales improved in December as compared to November while manufacturing activity in Chicago also boosted surprising everyone. However on negative side the US jobless claims increased to 381,000 in current week.

Economists at RDQ Economics commented, “The evidence continues to grow that economic growth is on an upswing as 2011 draws to a close.”

In reaction to weaker greenback the single currency also found support and recovered from its lowest in 11 years. The euro gained to 1.2949 versus the US dollar on Thursday as compared to 1.2938 in Wednesday’s North American trading session. The euro fell versus the Japanese Yen to 100.54 on Thursday as compared to 100.83 on Wednesday. The single currency has fell 3.3 percent versus the greenback in the current year while is down 7.4 percent against the Japanese Yen.

The dollar index DXY which measures the greenback’s performance against its six major counterparts fell to 80.425 on Thursday as compared to 80.526 on Wednesday’s North American trading session. The dollar index has appreciated 1.8 percent in the current year.

Among other currencies, the British Pound declined to 1.5412 versus the US dollar as compared to 1.5455 on late Wednesday. The Pound Sterling has declined by 1.3 percent in the current year.

Against the Japanese yen, the greenback fell to 77.63 on Thursday as compared to 77.95 on Wednesday.

US dollar gained on Thursday against its major counterpart currencies on positive US manufacturing activity. The Institute of Supply Management’s Index for purchasing managers fell 50.6 percent or 0.3 points but the index remained above the benchmark of 50 percent which according to most analysts is a healthy sign. Moreover, despite the drop the index was better than analysts’ expectations of 48.8 percent.

Analyst Ryan Wang from HSBC commented, “Demand and activity have been essentially frozen for the past two months. This is unlikely to be a sustainable situation, but for the time being the absence of outright contraction was a relief.”

The dollar index DXY which measures the US dollar’s performance against its major rival currencies advanced to 74.50 on Thursday as compared to 74.162 on Wednesday’s late trading hours.

Among other positive news was the US nonfarm payrolls report. According to US labor department jobless claims in United States declined to 12,000 to 409,000 for the week ended August 27^th, 2011. However, the greenback saw some pressure on the latest US construction projects data which dropped by 1.3 percent.

The euro declined to 1.4270 against the greenback on Thursday as compared to 1.4369 on Wednesday’s North American trading session. The British Pound also fell to 1.6175 against the US dollar as compared to 1.6247 on late Wednesday.

Against the Japanese Yen the greenback gained to 76.82 on Thursday as compared to 76.58 on Wednesday.

The euro reported heavy declined on Tuesday as German and French leaders showed their concern over the region’s economy but were not able to come with a solid solution for sovereign debt crisis.

The euro slightly gained to 1.4401 versus the greenback in early trading hours but later plunged to 1.4409 on Tuesday as compared to 1.4453 on Monday’s North American trading session. The euro touched the day’s low of 1.4352 on Tuesday.

According to Kathleen Brooks renowned analyst the meeting between French Prime Minister and German Chancellor produced nothing, she further commented, “There are no euro bonds and no increase in size, the markets are likely to be highly underwhelmed and this could heap pressure on the markets tomorrow, The only thing we do know is that Sarkozy and Merkel aren’t willing to ditch the euro zone and let the peripheral nations drown just yet.”

Further market was also uncertain about the single currency due to lower than expected Germany’s GDP which rose to 0.1 percent as compared to 1.3 percent in first quarter.

The dollar index DXY which measures the US dollar’s performance against its six major rival currencies slightly gained to 73.967 on Tuesday as compared to 73.836 on Monday’s late trading hours.

The British Pound surged 0.5 percent against the US dollar to 1.6464 despite disappointing UK’s inflation figure. Against the Japanese Yen, the US dollar declined to 76.75 on Tuesday as compared to 76.81 on late Monday.

The US dollar declined against its major counterpart currencies on Friday as US consumer confidence dropped more than expectations. According to the latest data of University of Michigan, consumer sentiment declined to its record level since May 1980.

Senior currency strategist Michael Woolfolk from Bank of New York Mellon commented, “The prevailing view in the market now is increasingly negative for the euro and dollar, which has benefited the safe-haven Swiss franc and Japanese yen,” he further added, “The euro-dollar is range bound and expected to remain a ’least ugly’ contest through U.S. Labor Day.”

The dollar index DXY which measures the US dollar’s performance against its major counterpart currencies dropped to 74.594 on Friday as compared to 74.618 on Thursday’s North American trading session. In the current week the index has reported no change however it is down by 5.6 percent in the current year till now.

The euro was slightly up to 1.4251 versus the greenback on Friday as compared to 1.4226 on Thursday’s late trading hours. The euro has fallen 0.2 percent against the US dollar in the current week, however is 6.5 percent above the US unit in current year so far.

In reaction to disappointing US economic data investors were driven toward Japanese Yen and Swiss franc due to their safe haven status. The Swiss franc jumped 1.9 percent versus the greenback to 77.66 as compared to 76.30 on Thursday. The US dollar was slightly up to 76.83 against the Japanese yen on Friday as compared to 76.79 on late Thursday.

The British Pound gained to 1.6281 against the US dollar on Friday as compared to 1.6225 on late Thursday. The Pound Sterling is down 0.7 percent against the greenback in current week however is up by 4.1 percent for the current year till now.

The US dollar strengthened on Thursday as the worries over debt crisis in euro zone escalated among investors. Moreover the latest development of spending cuts in US congress for debt ceiling created optimism for greenback among investors.

Senior market analyst Andrew Wilkinson from Interactive Brokers commented, “A nail-biting vote is expected in the House of Representatives as unified Democratic lawmakers gang up against an amended Republican proposal that would cut spending by $917 billion over 10-years if passed.”

The dollar index DXY which measures the US dollar’s performance against its major six counterpart currencies advanced to 74.210 on Thursday as compared to 74.088 on Wednesday’s North American trading session.

Positive US economic data also added to bullish sentiment for the greenback, as pending home sales increased by 2.4 percent to 90.9 in June as compared to 88.8 for the month of May. Moreover initial jobless claims also declined by 24,000 to 398,000 in the last week as per data of US Labor Department.

The euro dropped to 1.4313 against the US dollar on Thursday as compared to 1.4365 on Wednesday’s late trading hours.

However against other currencies the US dollar remained under pressure. The US dollar declined to 77.77 against the Japanese Yen as compared to 78.00 on late Wednesday. The greenback also slipped to 80.15 versus the Swiss franc on Thursday as compared to 83.39 on Wednesday.

Against the British Pound the US dollar traded 1.6334 as compared to 1.6321 on Wednesday. The greenback fell to 1.0986 versus the Australian dollar as compared to 1.1013 on late Wednesday.