Fears about global economy push dollar higher

AP News
Posted: Sep 20, 2012 4:27 PM

NEW YORK (AP) — The dollar rose against most other currencies Thursday after weak economic data from Asia and Europe pointed to more sluggishness in the global economy.

A private survey of manufacturers in China showed another decline in September. Japan, meanwhile, posted a $9.6 billion trade deficit in August as shipments to Europe and Asian countries fell.

In Europe, a closely watched survey suggested that the region is headed for a deepening recession. A purchasing managers' index for the 17 countries that use the euro fell to 45.9 in September from 46.3 in August, according to financial data company Markit.

Traders consider the dollar a safe haven, so it tends to rise when traders are worried about the economy.

The euro fell to $1.2967 in late trading Thursday from $1.3063 late Wednesday. The British pound fell to $1.6211 from $1.6230.

The dollar rose to 0.9330 Swiss franc from 0.9275 franc and to 97.66 Canadian cents from 97.42 Canadian cents.

The dollar also strengthened against currencies in Australia, New Zealand, Norway, South Korea and Hong Kong.

The dollar fell to 78.26 Japanese yen from 78.39 Japanese yen.